The Hottest Technology Companies in Canada

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Institutional Equity Research

Industry Update
June 06, 2013

Technology Hardware

The Hottest Technology Companies
In Canada
30 Public And Private Companies Investors Need To
Know

All figures in Canadian dollars, unless otherwise stated. 13-123437 2013
CIBC World Markets does and seeks to do business with companies covered in
its research reports. As a result, investors should be aware that the firm may
have a conflict of interest that could affect the objectivity of this report.
Investors should consider this report as only a single factor in making their
investment decision.
See "Important Disclosures" section at the end of this report for important
required disclosures, including potential conflicts of interest.
See "Price Target Calculation" and "Key Risks to Price Target" sections at the
end of this report, or at the end of each section hereof, where applicable.

Sector Weighting: Market Weight

Todd Coupland, CFA
1 (416) 956-6025
Todd.Coupland@cibc.ca

Robin Manson-Hing
1 (416) 594-7232
robin.manson-hing@cibc.ca

The Hottest Technology Companies In Canada - June 06, 2013
2
Table of Contents
Tech's Time Is Now ....................................................................................... 3
New Information On New Companies .......................................................... 3
The Timing Is Right For Tech ......................................................................... 5
Canadian Innovators Thriving ..................................................................... 7
Talent Remains But Double Whammy Hurt.................................................. 8
M&A Continuing And Venture Capital Growing ............................................10
Government Has Not Helped In The Last Two Years ...................................12
Venture Capital Already Rebounding ..........................................................13
Canadian Companies Ready To Take The Next Step ...................................14
Company Profiles
Absolute Software Corporation .....................................................................16
Accedian Networks Inc. ................................................................................17
Avigilon Corporation .....................................................................................18
Awesense Wireless Inc. ................................................................................19
Chango Inc. .................................................................................................20
Creation Technologies LP ..............................................................................21
Desire2Learn Incorporated ...........................................................................22
EnWave Corporation.....................................................................................23
Global Relay Communications Inc. ................................................................24
Halogen Software Inc. ..................................................................................26
HootSuite Media Inc. ....................................................................................27
Keek Inc. .....................................................................................................28
Kik Interactive, Inc.......................................................................................29
Kinaxis Inc. ..................................................................................................30
MOSAID Technologies Inc.............................................................................31
Nanotech Security Corp. ...............................................................................32
PointClickCare.com.......................................................................................33
Real Matters Inc. ..........................................................................................34
Redknee Solutions Inc. .................................................................................35
SkyWave Mobile Communications Inc. ..........................................................37
Solace Systems Inc. .....................................................................................38
Spectra7 Microsystems Inc. ..........................................................................39
tucows Inc. ..................................................................................................40
Vision Critical Communications Inc. ..............................................................41
ViXS Systems Inc. ........................................................................................42
Wattpad .......................................................................................................43
Webtech Wireless Inc. ..................................................................................44
E-commerce In Canada ...................................................................................45
Thank You Canada Customs ......................................................................45
Little Brother Ignored Again ......................................................................45
Profitability Takes Time .............................................................................45
Company Profiles
Beyond the Rack Inc. ...................................................................................47
Buyers Unite Inc./TeamBuy.ca......................................................................48
Well.ca Inc. ..................................................................................................49

3
Techs Time Is Now
The recent lull in Canadian technology investment post the 2008 downturn and
Nortel Networks (NRTLQPN) and Research In Motion (BBRYSO-Spec.) fallout
has prompted many firms to take a more entrepreneurial route. One example is
the 200 companies that now occupy 2 million square feet of real estate owned
by Terry Matthews in Kanata. Ten years ago the number of companies was 20,
with little growth. Downriver, the old Nortel buildings at Technoparc in Montreal
are being occupied by tenants like Accedian Networks and other up-and-coming
IT firms, along with aerospace and U.S. subsidiary tenants that are able to
operate and take advantage of the large talent pool in now-affordable real
estate. The resource sectors current negative cycle is being timed
almost perfectly with:
Increasingly driven and creative technology entrepreneurs;
An experienced pool of talent;
A growing number of engineering/computer science graduates;
An increased venture capital and government funding focus;
Reasonable valuations; and,
A lower Canadian dollar.
Most importantly, there are dozens of Canadian technology companies
with material revenue bursting at the seams, many of which are
showing rapid profitable growth. The story at the end of the day is one of
Canadian entrepreneurs, their teams, and their ability to outperform their global,
and often much larger, peers in the markets in which they compete.
New Information On New Companies
This report highlights 30 of the fastest-growing private and/or under-covered
small-cap public technology companies in Canada. Exhibit 1 lists the profiled
companies and their industry sub-group. Collectively, the (mostly profitable)
private companies profiled within this report generated close to $2 billion in
revenue in 2012, and virtually all of the private companies in this paper could go
public if they so chose to over the next few years. These companies employ an
estimated 10,500 people, the vast majority of whom are highly skilled, creative
and flexible workers. These are the same types of employees that governments
state are necessary for improved productivity of the labor force.
In each profile, we provide company sales and growth estimates, headcount,
detailed market sizing, growth and description along with details on the
companys product/service and competitive advantages, customers and business
plans with strategic, current and target profit objectives.
4
Exhibit 1. Companies Profiled
Company Status City Industry
Absolute Software Corporation ABTTSX Vancouver Mobile Dev ice Management
Accedian Networks Inc. Priv ate Montreal Wireless Backhaul Service Assurance
Av igilon Corporation AVOTSX Vancouver Video Surv eillance Market
Awesense Wireless Inc. Priv ate Vancouver Electricity Anti-theft
Bey ond The Rack Inc. Priv ate Montreal E-Commerce
Chango Inc. Priv ate Toronto Real-time Bidding
Creation Technologies LP Priv ate Vancouver Mid-market EMS
Desire2Learn Incorporated Priv ate Kitchener/Waterloo Learning Management Systems
EnWav e Corporation ENWTSX-V Vancouver Radiant Energy Vacuum For Consumption
Global Relay Communications Inc. Priv ate Vancouver RDBMS Software
Halogen Software Inc. HGNTSX Ottawa Talent Management Software
HootSuite Media Inc. Priv ate Vancouver Social Media Ad Market
Keek Inc. Priv ate Toronto Social Media Ad Market
Kik Interactiv e, Inc. Priv ate Kitchener/Waterloo Mobile Ott Messengers
Kinax is Inc. Priv ate Ottawa Cloud Based SCM
MOSAID Technologies Inc. Priv ate Ottawa Semiconductor IP Market
Nanotech Security Corp. NTSTSX-V Surrey, BC Anti-counterfeiting Security Feature
PointClickCare.com Priv ate Mississauga, ON SAAS For Skilled Nursing
Real Matters Inc. Priv ate Markham, ON Property Inspection Marketplace Insurance
Redknee Solutions Inc. RKNTSX Mississauga, ON Real-time Charging
Sky Wave Mobile Communications Inc. Priv ate Ottawa M2M Satellite Market
Solace Systems Inc. Priv ate Ottawa Global Application Infrastructure And Middleware
Spectra7 Microsystems Inc. SEVTSX-V Markham, ON Analog IC Market
TeamBuy.ca Priv ate Toronto E-commerce
tucows Inc. TCTSX Toronto Domain Name Registrations Market
Vision Critical Communications Inc. Priv ate Vancouver Online Surv ey Software
ViXS Systems Inc. Process of becoming public Toronto Video Processing Market
Wattpad Priv ate Toronto Social Media Ad Market
WebTech Wireless Inc. WEWTSX Vancouver Global Fleet Management
Well.ca Inc. Priv ate Kitchener/Waterloo E-commerce
Source: Company reports and CIBC World Markets I nc.
5
The Timing Is Right For Tech
Investor interest in technology companies waned over the last eight years, with
the tech weighting within the TSX Composite dropping from over 6% at the end
of 2004, well after the 2001 tech bubble, to 1.7% today. Even excluding the
growth of the much larger Materials and Energy sub-sectors over the years, as
well as Financials, technology has shrunk more than any other sector.
Exhibit 2. Technology Has Posted The Largest Decline In The
Last 10 Years
Non-Resource Sectors Of The TSX Composite
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12
%

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Industrials Telcom Consumer Discretionary Consumer Staples Health Care Utilities Information Technology

Source: Bloomberg, Company reports and CIBC World Markets Inc.
Even excluding Blackberry and Nortel, under-investment remains: One of
the primary reasons proffered for the decline is that Nortel (one-third of the tech
weighting at the end of 2002) and Research In Motion (71% in 2007) were too
speculative for a true representation of the degree to which a portfolio should be
weighted towards technology. However, even if we exclude these names, the IT
sector as a percentage of the TSX Composite remains at less than half of levels
10 years ago (Exhibit 2). M&A such as IBMs (IBMNYSE) acquisition of
Cognos, AMDs (AMDNYSE) acquisition of ATI Technologies, Borealis
acquisition of Teranet Income Fund, and TELUS (TR) acquisition of Emergis,
among others accounted for the remainder of the decline.
If we value the private companies in our report alone at a conservative 1x price
to sales multiple [the average of the last three Canadian IPOs Avigilon (AVO
TSX), Halogen Software (HGNTSX) and ViXS, which will go public at an
estimated 4x], the approximate $2 billion in market capitalization would
represent just less than 10% of the current value of the technology sector in the
TSX Composite. Given the current growth projections of these companies and
maintaining the conservative 1x P/S multiple, these firms could represent over
20% of the current weight of technology companies on the Composite in another
three years.
6
Exhibit 3. Excluding Nortel And Blackberry, Still Proportionally Lower
6.6%
1.7%
1.3%
1.1%
2.5%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12
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0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
24.0%
28.0%
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5
0
0
Info Tech As A Percentage Of The TSX Composite
Info Tech as a % of the TSX Composite (excluding Blackberry and Nortel)
Info Tech (% of TSX Composite Including Current Privates at 4x Price / LY Sales)
Info Tech As A Percentage Of The S&P 500

The relative decline in technology investing is occurring despite increasing
numbers of engineering graduates, the prevalence of experienced technology
staff and management across the country, the hundreds of Canadian companies
in the public markets and forward P/E multiples that are lower than historical
levels. Forward P/S valuations are in line with those in 2002 and generally
higher than in 2007, although most of the increase is primarily due to there
being more software companies in the Composite.
Exhibit 4. Forward P/E Valuations Are Attractive Versus Historical Levels
2002 Current 2007
S&P/TSX Composite IT Sector Index Weighting Forward P/E
Research In Motion Ltd 71% 36.8x
Nortel Networks Corp 9% n/a
Cognos Inc 6% 32.1x
CGI Group Inc 5% 16.8x
Open Text Corp 2% 28.9x
Teranet Income Fund 2% n/a
MacDonald Dettwiler & Associates 2% 18.3x
Celestica Inc 2% 11.9x
Emergis Inc 1% n/a
Aastra Technologies Ltd 1% 13.4x
Average 22.6x
Nortel Networks Corp 33% n/a
Celestica Inc 14% n/a
Cognos Inc 11% 28.5x
Onex Corp 9% n/a
ATI Technologies Inc 6% n/a
Research In Motion Ltd 4% n/a
Creo Inc 2% 25.5x
Hummingbird Ltd 2% n/a
Cinram International Income Fund 2% 10.9x
Zarlink Semiconductor Inc 2% n/a
Gennum Corp 1% n/a
Geac Computer Corp Ltd 1% n/a
Cognicase Inc 1% n/a
Descartes Systems Group 1% n/a
Emergis Inc 1% n/a
Leitch Technology Corp 1% 271.x
Average 18.6x
Open Text Corp 16% 12.x
MacDonald Dettwiler & Associates Ltd 9% 12.6x
Constellation Software Inc/Canada 7% 16.4x
Wi-Lan Inc 2% 20.9x
Average 17.3x

7
Exhibit 5. Forward P/S Valuations Are In Line With Historical Levels
Current 2007 2002
S&P/TSX Composite IT Sector Index Weighting Forward P/S
MacDonald Dettwiler & Associates Ltd 9% 1.3x
Constellation Software Inc/Canada 7% 2.8x
Wi-Lan Inc 2% n/m
Average 1.4x
Research In Motion Ltd 71% n/m
Nortel Networks Corp 9% 0.1x
Cognos Inc 6% n/a
Teranet Income Fund 2% n/a
MacDonald Dettwiler & Associates 2% n/a
Emergis Inc 1% n/a
Aastra Technologies Ltd 1% n/a
Average 0.9x
Nortel Networks Corp 33% 0.7x
Cognos Inc 11% 3.3x
Onex Corp 9% n/a
ATI Technologies Inc 6% 0.9x
CGI Group Inc 5% n/a
Research In Motion Ltd 4% n/a
Creo Inc 2% 0.7x
Hummingbird Ltd 2% 2.0x
Cinram International Income Fund 2% n/a
Zarlink Semiconductor Inc 2% 1.3x
Gennum Corp 1% n/a
Geac Computer Corp Ltd 1% n/a
Cognicase Inc 1% n/a
Descartes Systems Group 1% 2.x
Emergis Inc 1% 1.3x
Leitch Technology Corp 1% n/a
Average 1.5x

Canadian tech IPO market is beginning to rebound: The success in 2013 of
Canadas two most recent technology IPOs Avigilon (up almost 300% since
November 2011, trading at 4x forward P/S) and Halogen (shares have remained
above IPO price, trading at 7x TTM sales) has helped to improve negative
sentiment post the Facebook (FBNASDAQ) IPO in May 2012, the Smart
Technologies (SMTSO) IPO in July 2010 and the generally quiet IPO period
after 2008. Consequently, a number of private technology companies have
become increasingly confident that a public IPO in Canada is a real option,
something not seriously contemplated by most prior to 2013.
We conclude from this report that the Canadian technology industry is
preparing for its biggest step-up in the public markets since 2007. In our
opinion, the stage is set for technology to claim a larger weighting in portfolios.
Canadian Innovators Thriving
The lack of material incentives from most provinces, decreases in venture and
public capital, cutbacks to government IT infrastructure dollars, and a general
lull in major Canadian technology IPOs have some believing the Canadian
technology sector may have undergone a permanent structural decline rather
than a cyclical one. However, macro headwinds have been overcome by the
continued innovation and pragmatic nature of Canadian entrepreneurs
and their like-minded Canadian employees.
There are dozens of eight-figure-revenue private companies growing at more
than 30% across the country. Over the last six months, we have spoken and
built relationships with the leaders of dozens of emerging technology companies
across Canada, ranging from those in social media, semiconductors, electronic
manufacturing services, e-commerce and SaaS. Every major technology sector
in Canada has a North American and/or global presence and the individuals and
management behind these companies are more diverse than one would expect.
8
In this report, we identify and discuss in detail a number of the companies that
could be on the verge of stepping into the public eye over the next few years.
We also profile a number of micro-cap companies that have flown under the
radar of the investment community and that, we believe, deserve a closer look.
Talent Remains But Double Whammy Hurt
The Ottawa region is an important example of the hollowing out of
Canadian technology companies. On December 31, 2000, Ottawa-based
Nortel had 12,600 full-time R&D employees in Canada, and spent about
$6 billion that year. Five years later, these numbers had fallen to 4,760
employees and $2.5 billion spent and by 2009 Nortel filed for bankruptcy.
While R&D spending increases at foreign technology giants IBM, Alcatel-Lucent
(ALUNYSE), Ciena (CIENNASDAQ), AMD and Ericsson (ERICYTSX) amounted
to about $1.3 billion in 2011, a hole in technology investment of more than
$4 billion remains today, even excluding inflation. A number of former Nortel
employees fanned out to the likes of QNX, Bell (BCER), the Government of
Canada and Nortel U.S. subsidiary offices, while still others moved to smaller
companies. The Nortel bankruptcy combined with foreign nationals attracting
experienced workers served as a double whammy to the Canadian technology
sector on top of the general downturn in the economy.
At the same time, engineering and computer science students continue to
graduate from the nearby Universities of Carleton and McGill, producing top
electrical engineering and computer science talent. The rate of engineering,
math and computer science graduates in Canada continues to increase at a
materially faster-than-average rate. The talent from the former networking giant
remains and schools continue to churn out large numbers from proven programs
across the country.
Exhibit 6. Faster-than-average Growth Of Engineering/Math/Computer
Science Graduates
Undergraduate Degree
2012/2013
Graduate Estimate
Five-year
CAGR
Canada 5,581 4.1%
Agriculture, Natural Resources And Conservation 5,095 3.9%
Architecture And Related Serv ices 5,077 3.0%
Humanities 4,942 3.2%
Business Management And Public Administration 6,060 5.0%
Education 4,006 2.3%
Engineering 6,552 5.4%
Law, Legal Professions And Studies 9,949 5.5%
Medicine 11,891 4.9%
Visual And Performing Arts & Comm. Technologies 4,793 2.3%
Physical And Life Sciences And Technologies 5,478 4.0%
Math., Computer And Information Sciences 6,111 5.2%
Social And Behavioural Sciences 4,862 3.4%
Other Health, Parks, Recreation And Fitness 5,092 2.9%
Dentistry 16,910 6.2%
Nursing 4,909 2.6%
Pharmacy 10,297 5.3%
Veterinary Medicine 6,224 5.8%
Source: Statistics Canada and CIBC World Markets
9
The same trend is apparent across the country: Over the last few years, a
number of large Canadian technology companies have either slashed jobs or
seen employees eventually move on, driven by M&A.
Waterloo: Research In Motions downturn in recent years has driven
ex-RIM employees to join the most exciting companies in Canada, including
all three Waterloo private companies in our report Desire2Learn, Kik and
Well.ca.
Montreal: The fallout from the (mis)fortunes of Nortel also had material
ramifications in Montreal. Companies such as Accedian (featured in this
report) and Bombardier (BBD.BSO) and foreign multi-nationals like Ciena,
Ericsson, Alcatel-Lucent and Amdocs (DOXNYSE) took over Nortels old
offices. Other companies that have been taken out over the years, such as
Miranda Technologies [purchased by Belden (BDCNASDAQ) in 2012],
Emergis (e-Business now owned by TELUS), and Softimage [3D Animation
now owned by Autodesk (ADSKNASDAQ)], continue to operate on a
smaller scale. In the meantime, the gaming industry has stepped up, with
EA Games (EANASDAQ) and Ubisoft (UBIPPA) employing over
3,000 people alone and a number of large Canadian-owned companies,
such as Behaviour Interactive, growing and, who knows, possibly set to
feature in a report similar to this one in the next few years.
Toronto: Given the sheer size of Toronto, its employment landscape is
more fluid, but it still underwent a material shift in its tech workforce with
AMDs purchase of ATI in 2006 and subsequent decline in graphics
processors since then. Furthermore, takeovers and/or declines over the last
five years of a number of mid-sized companies, such as Gennum,
RuggedCom, Procom Consultants, SMTC (SMTCNASDAQ) and dozens of
others, in tandem with an influx of thousands of engineering and computer
science graduates, have created a foundation on which companies such as
Real Matters, Point Click Care, Chango, Keek, Kik, and ViXS can build from
a rich talent pool.
Vancouver: Vancouver (along with Montreal) is perhaps the most
under-appreciated tech spot in Canada. Unlike the East Coast, which was
heavily influenced by the ups and downs of Nortel and Research In Motion,
there has been steady growth in the region and, with the gradual economic
turnaround, companies such as HootSuite, Vision Critical, and Global Relay
are beginning to reach the point of critical mass. The success of Avigilon
two years ago has not gone unnoticed and a number of these companies
may have a path to a viable IPO.
10
Exhibit 7. Technology Is Brewing Across The Country Public Companies By Geography
Region Population Market Capitalization

Primary Universities
Number Of Public
Companies
GTA 5,838,800 $8,303,780,314
University of Toronto, York University, Ryerson Univ ersity,
McMaster University
67
Greater Vancouver 2,419,700 $1,593,259,053
University of British Colombia, Simon Fraser University, University
of Victoria
66
Calgary 1,265,100 $1,542,891,557 University of Calgary, Mount Royal Univ ersity 30
Greater Montreal 3,908,700 $10,304,812,703
McGill University , Concordia Univ ersity, Queen's University,
Universite de Montreal
26
Ottawa Region 1,258,900 $952,967,393 University of Ottawa, Carleton University 15
Kitchener/Waterloo 498,500 $14,112,144,487 University of Waterloo , McMaster University , Western University 7
Quebec City Region 761,700 $300,105,593 Lav al Univ ersity 6
Edmonton 1,196,300 $20,798,810 University of Alberta 5
Kelowna 182,800 $27,687,732 University of British Colombia 4
Guelph 141,300 $111,474,363
University of Guelph, University of Toronto, York University ,
Ry erson University, McMaster Univ ersity, University of Waterloo,
Western University
2
Saskatoon 272,000 $106,553,008 University of Saskatchewan 2
Winnipeg 762,800 $3,657,277 University of Manitoba 2
M&A Continuing And Venture Capital Growing
Perhaps one of the most encouraging quotes about macroeconomic conditions in
Canada is one from Ciscos (CSCONASDAQ) CEO, John Chambers, on the
companys Q1 conference call. His response to a question about the macro
environment:
We're looking more towards the tax policy and is government able to instill the
confidence in business that allows them really to reinvest? If I were to look at
one model (that) we ought to look at carefully around the world, it's Canada,
the easiest place to do business. It doesn't matter which party is in power,
even their provinces, i.e., their states, when the national government, Prime
Minister Harper gets [sic] it. The leaders in Ottawa get it. They drive down
through and make it very easy to do business there and you're going to see us
grow our business there as well as invest overall.
With the current U.S. administration relegating tax repatriation to the
backburner until 2016, Cisco has stated that it will continue to deploy its
estimated $40 billion in non-U.S. cash overseas. This is likely also the case for
other U.S.-based technology companies and their hundreds of billions in cash
sitting outside the U.S. Smaller Canadian firms continue to be picked off by their
southern counterparts, who are often looking to leverage their existing staff in
the U.S. Recent examples include:
DALSA purchased by Teledyne (TDYNYSE) in December 2010 for
$341 million (7.5x EV/EBITDA, 1.1x EV/Sales);
Gennum purchased by Semtech (SMTCNASDAQ) in January 2012 for
$500 million (15x EV/EBITDA, 2.6x EV/Sales);
RuggedCom purchased by Siemens (SINYSE) in January 2012 for
$440 million (21.4x EV/EBITDA, 3.2x EV/Sales); and,
Zarlink purchased by Microsemi (MSCCNASDAQ) in November 2011 for
$525 million.
11
In 2012, there were exactly 100 acquisitions of Canadian companies around the
world, ranking Canada third in terms of total acquisitions, according to CB
Insights. In comparison to its size on a proportional basis, Canada is the most
likely country in which a technology company will be acquired outside of the U.S.
Exhibit 8 lists the countries trailing the U.S. in company acquisitions.
Exhibit 8. Technology Companies Acquired In 2012 By Country
Ranking Country Acquisitions
#2 United Kingdom 156
#3 Canada 100
#4 India 53
#5 Germany 52
#6 France 35
Source: CB I nsights, Company reports and CIBC World Mark ets Inc.
We dont believe that any of the factors that rendered Canadian companies
attractive to U.S. multi-nationals in 2012, including the postponed tax
repatriation or continued growth in their record cash balances, will change
anytime soon. This tells us that:
1. Canadian companies should trade at higher-than-historical premiums; and,
2. The number of acquisitions of Canadian companies should continue to
increase if Canadian companies continue to perform well.
We believe that if and when these private companies turn public, their
increased visibility and transparency will attract U.S. companies to a
number of the remaining private entities.
12
Exhibit 9. Percentage Change In Gross Expenditure On R&D (GERD) For Selected Countries (20052010)
-15%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
160%
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Notes: based on constant 2005 dollars and PPP; indicates change between 2004 and 2009

Source: OCED, Main Science and Technology Indicators and CIBC World Markets Inc.
Government Has Not Helped In The Last
Two Years
French company Ubisofts decision in 1997 to locate and create 500 Montreal
jobs over five years stemmed only partially from common language, proximity to
North America and the citys reputation for creativity. The main driver was the
decision by the federal and provincial governments to contribute $10,000 and
$15,000, respectively, per employee per year. Today, Ubisofts Montreal office
employs 2,100 people and there are plans to expand further. Upon seeing the
success of this program, Premier McGuintys Ontario provincial government
pledged in 2009 $263 million over 10 years to help Ubisoft expand its studios in
Toronto. This expansion came shortly after Ontario announced it was boosting
its interactive digital media tax credit from 25% of labor costs to 40%.
However, these incentives came on the heels of a real economic decline and a
bottoming in 2010 in total spending, and have tended not to move the needle.
Since 2010, the private sector has shown resilience in R&D growth, spending
about 1% in the face of an uncertain environment. At the same time, however,
the federal government has cut spending, on average, 9% a year while the
13
provinces strategies (e.g., R&D tax credits) were creative but too small to have
a material impact. Exhibit 10 outlines the macro picture over the last 10 years,
with government spending showing a pullback in the last two years. There is
reason to hope, however, that this situation could change, as we discuss below.
Exhibit 10. Gross Expenditures On R&D (GERD) Private Sector Doing
The Heavy Lifting
Changing trend
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
C
A
D

M
i
l
l
i
o
n
s
Business enterprises Higher education
Federal government Provincial government and provincial research org.

Source: Statistics Canada and CIBC World Markets Inc.
Venture Capital Already Rebounding
In 2013, the federal budgets focus shifted for the first time since 2006, from
highlighting Science, Technology and Innovation Leadership to Research and
Innovation in technology. It included increased spending (up close to 40% Y/Y),
incorporating $325 million over eight years allocated to sustainable development
technology, $121 million over two years to grow innovative businesses in
Canada, $60 million over five years for incubator and accelerator organizations,
and $100 million to the Business Development Bank of Canada (BDC) as well as
other programs.
At the end of May, the Minister of Finance announced that the government of
Canada is soliciting expressions of interest on the creation of two new funds that
are expected to manage between $300 million and $400 million in capital, with
the federal government contributing $1 for every $2 contributed by others.
Exhibit 11 illustrates that government R&D spending, despite the recent
decreases, remains a major factor in venture investments (augmenting private
spending) and the contribution is expected to increase over the next few years.
The funds are being funneled from the top down and entrepreneurs (with
guidance from venture funds) are pushing their companies to ramp up
technology spending.
14
Exhibit 11. Government Is Key To New Fund Formations ($ mlns.)
$0 $200 $400 $600 $800 $1,000
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Individuals Corporations Fund of Funds Government Pensions Foreign Insurance Other
$228
$676
$789
$42
$327
Government
Key Enablers
Key Enablers
Corporations
Provincial FoFs BDC Individuals
VC New Fund Formation
$1.8 Billion in 2012, A Six year High

Source: Canadian Venture Capit al Association, Company reports and CIBC World Markets Inc.
According to Canadas Venture Capital & Private Equity Association (CVCA),
venture capitalists invested $1.5 billion in 2012, equal to the amount in 2011
and the highest since 2007. More impressive, however, was that 41% of capital
flows were to new investments (15-year high), including 395 Canadian
companies (a five-year high). Information Technology remained the focus for
VCs ($719 million invested in 214 companies).
There are a number of major funds in Canada. Omers Ventures, with
investments in Desire2Learn, Vision Critical, HootSuite and Wattpad, expects to
continue to focus on technology, media and telecom investments, with a 75%
focus in Canada. It invests from initial funding through to late-stage funding, up
to more than $30 million. Kik received major funding from Fred Wilson and
Union Square, which also invested in Twitter and Zyenga (ZNGANASDAQ).
iNova typically invests earlier in the lifecycle and has found success with the
likes of Chango and Well.ca.
In talking with these technology companies, we took away one common
denominator: venture capital investments have allowed the companies to
expand their software developer/engineering base to the point where they can
surpass and stay ahead of their competitors on the innovation front. Continued
investments will likely continue this trend.
Canadian Companies Ready To Take The Next
Step
With these positive macro trends, we have identified 20 private firms ready to
take the leap to the public markets, one private company that is moving to
become public, and nine public stocks that have perhaps fallen under the
investor radar and deserve a second look.
15
Company Profiles
Sources for tangible addressable markets (TAM) are company reports unless
otherwise indicated.
16
Exhibit 12. Absolute Software Mobile Device Management
Absolute Software Corporation

ABT TSX Venture Sales 2012 (Sales Contracts): US$43.1 million Employees: 393
CEO John Livingstone Approx Growth Rate LY: -2% Located: Vancouver, BC

Est. Forecasted Growth By
Company NY 18% Founded: 1999
Pro Forma Net Cash US$57 million
Market Capitalization: $250 million
Sector: Smart Device Trace And
Management
The move towards securing data is becoming more impor tant to enterprises and
governments. Thieves and software hackers are becoming increasingly sophisticated in
figuring out ways around hardware detection and software navigation. In most cases, once
a GPS chip or detection tracking software is removed, the stolen items are free to be used
by the perpetrators.
The market for tracking, managing and erasing mobile devices is an important and
growing market. Currently, only 43% of laptops, 42% of smar tphones and 29% of mobile
devices can be remotely locked or erased, according to Vodafone. The API used for
managing laptops with x86 hardware differs significantly from that of smartphones and
tablets. Historically, these have been handled by different competitors. In addition, in the
laptop/desktop world, client management tools related to lifecycle management have been
handled by established companies such as Altris (Sy mantec), Kace (Dell) and BigFix (I BM).
In IT service management, software for data and device security has been offered by
companies such as Safeboot (McAfee) and Utimaco where Absolute is generally purchased
as a complement to their products. This market is moving to a new phase and should
expand given growth in enterprise mobility in smartphones and tablets around the world.
Est. TAM 2012: 821 million devices
Est. TAM in 4 Years: 1.2 billion devices

Sub-Sector: Source:
Radicat i Group Mobile Device Management
Est. TAM 2012: $525 million
Est. TAM in 4 Years: $1,123 million

Product/Service:
Absolute Computrace: A SaaS solution providing commercial customers with the ability to track their computer and mobile
device inventories on or off the corporate networ k. The fir mware-persistent software is self-healing, occupying only 8K of
memory when idle and 27K when it places a call. This software is patented and provides software license compliance,
protecting data through functions such as locating and remotely locking devices, and it is built into all x86 laptops by every
major PC OEM. While the laptop market is steady to declining, growth is expected to come from mobile. Samsung is a good
example of such as it has chosen Absolute Computrace to boost its new enterprise platform (Samsung Knox) for its Galaxy
S4. More of these type of deals are expected in the future.
Absolute Manage: Lifecycle management and mobile device management solution. This product enables management of
application, licenses, software distribution, updating patches, encryption status and other essential functions for both PC and
Mac computers, as well as mobile solutions.
Absolute Service: Track perfor mance and ensure delivery of established service-level agreements.

Customers:
Revenue is derived from 5 million paid subscriptions under management. Education and enterprise are the largest
end-markets. The company sells through PC OEMs (80% of sales). I ts largest PC OEM partner generated approximately
34% of total sales contracts last year. Sales are increasingly diversified, with 27% coming from its second- and
third-strongest par tners in 2012. Of sales, 8% were to consumer customers. Over 500 million laptops have Absolutes
fir mware-persistent solutions embedded.

Business Plan
Moving Forward:
The business model is for revenue growth through a combination of increased laptop penetration, tablet and smartphone
growth, cross-selling of complementary products and international expansion. Revenue recognized from the prior year's
deferred revenue was 78% and contracts are typically two to three years from laptop owners with the embedded
firmware code. While a wide variety of solutions exist for mobile device management (such as Air Watch and Mobile Iron), a
similar solution is not available for laptops or PCs as the x86 Windows operating systems differ materially and are not easily
modified with an API. Absolute has a natural competitive advantage versus other laptop secur ity competitor s in that it is
already embedded in the fir mware of 500 million laptops and this lends itself to managing an already deployed hardware.

In December 2012, two directors of Crescendo Partner s joined the board. The New York-based investment fir m has had
success in encouraging companies to explore strategic options, often leading to a sale. These include DALSA
Semiconductors, Spar Aerospace and Bridgewater Systems. Absolute will continue to execute its business plan. Longer term
we would not be surprised if the company explored strategic options that included running an auction or a
complete sale of the company.
Source: Radicati Group, Company reports and CIBC World Markets Inc
17
Exhibit 13. Accedian Networks Wireless Backhaul Service Assurance
Accedian Networks Inc.

Private 2012 Sales: $50MM to $100MM Employees: 225
CEO Patrick Ostiguy Approx Growth Rate LY n/a Located: Saint-Laurent, Quebec

Pro Forma Net Cash n/a
Investors: Summit Par tners, Rho Canada Ventures, Skypoint Capital, Solidarity Fund QFL.
Sector: Source: ABI
Research
Wireless Network Service
Assurance
Demand for data on smar tphones and for OTT video has grown rapidly over the last few
years and is expected to grow at a CAGR of 43% until 2017, according to Cisco. 40G
and 100G continue to be discussed as future solutions for data center and enterprise
connectivity, as well as for future potential bandwidth increases, but 10G is currently the
market seeing the most take-up, driving virtually all growth in total Ethernet switches.
One of the key bottleneck areas is mobile backhaul, which is seeing a real move to
upgrading circuits in order to suppor t 4G/LTE.

The ability to assure and optimize network perfor mance in real time is of real value to
network operator s. Higher-speed technology is required as mobile networ ks move to
4G/LTE. This market is becoming increasingly impor tant to carriers as downtime can
cause a material loss in customer satisfaction and eventual renewals. This recognition by
carriers has pushed sales of per for mance assurance companies such as NetScout and
Accedian materially higher. These companies are entrenched with customers based on
their ability to assure and optimize network per formance through the use of
network-embedded software and hardware solutions.
Est. TAM 2011: $2.55 billion

Sub-Sector:

Wireless Backhaul Service
Assurance
Est. TAM 2011: $2 billion

Product/Service:

Accedian sells solutions that provide service providers with network per for mance visibility and optimization. To do so,
Accedian instruments the network with end- to-end solutions, including software agents, miniaturized network devices, and
perfor mance-aware network elements. These, in conjunction with a power ful cloud-based App, provide the level of
actionable insight required to optimize usage and per for mance of bandwidth in a real- time fashion. Accedian' s competitive
advantage is its tight integration of best-of-breed traffi c conditioning and per formance assurance. These solutions are
primarily for mobile backhaul, small cells, cloud services and business services, and are aimed at ensuring and optimizing
the per for mance (e.g., throughput) of mobile services, more specifically at the backhaul bottleneck that exists between
base-stations and switching centers. Additional benefits include reducing capex/opex, accelerating deploy ment, reducing
time to revenue, allowing the offering and monetizing of value-added SLAs, and offering a better QoS/QoE to customers.
The products are installed at cell sites (Macro and Small cells), customer premises, and switching centers. The software
solutions include the companys Vision Suite, which is aimed at automating service activation & turn-up perfor mance
verification, managing perfor mance assurance and optimization, and repor ting on network per for mance and service-level
agreements.

Customers:

Its products are installed in 90,000 U.S. base stations and 150,000 worldwide. Customers are well diversified and include
Tier 1 mobile operators and Ethernet service providers. Revenue came from 314 different customers in 2012, with 30% from
customers outside North America.

Business Plan Moving
Forward:

Accedian is growing rapidly and has strong gross margins due to the high software and IP content. Growth is expected from
business Ethernet and upgrades in mobile backhaul to suppor t small cells and 4G networks around the world. Accedian has
proven itself and is an established supplier to U. S. Tier 1 carriers. The company expects to leverage its experience as
4G/LTE grows globally with emphasis in Europe and Asia Pac. The focus on upgrades at the mobile backhaul level is
ramping up. Moreover, the emergence of small cells and the recognition of business Ethernet as a technology of choice for
enterprise cloud connectivity are aiding in its service assurance momentum. These trends are expected to continue
momentum in 2013 and beyond.
Source: ABI Research, Company reports and CI BC World Markets Inc.
18
Exhibit 14. Avigilon Video Surveillance
Avigilon Corporation

AVO TSX Venture 2012 Sales: $100 million Employees: 300
CEO Alexander Fernandes Approx Growth Rate: 80% Located: Vancouver, BC


Sector: Source: ABI
Research
Global Homeland Security Market Sub-Sector:
Source: ABI Research
Video Surveillance Market
While government and corporate budgets remain constrained, there are a number of factors boosting spending on video surveillance.

1) Increased awareness of affordable hybrid/digital security systems. A large portion of businesses have installed legacy inactive surveillance
cameras for years, perhaps decades, as a deterrent. Digital Video Recorders (DVR) with encoders were widely unused due to the lack of aw areness
and availability of low-cost solutions at the time of previous installations. I t is forecast that 2013 will be the first year that IP cameras will begin to outsell
analog cameras and this trend is expected to continue.

2) High-profile security incidents The Boston Marathon bombings prompted I HS to raise its 2016 forecast for the video-surveillance
equipment market. Continued headlines of robberies and violent incidents play into demand for video surveillance at corporate and government
levels.

3) Increased bandwidth resulting in higher-quality, higher-fps captures, increased storage, lowered I T infrastructure and lower monthly
Network Video Recorder (NVRs, open versus proprietary DVRs) costs are widening the market for I P surveillance.

The video surveillance market comprises hundreds of competitors but most do not offer fully digital end- to-end high definition solutions. The primary
competitor s that offer a full solution include Bosch Security, Cisco, CSST (China), Hikvision (China), March Networks, Mobotix, Nice Systems, and
Verint. Avigilon is likely the fastest-growing major video surveillance company in the world as the combination of attractive pricing, restricted dealer
access (leading to a focused sales group) and its industry-leading 29 mega-pixel (MP) cameras has found very strong traction in a shor t amount of
time. Avigilon has won numerous awards over the last few years, including Deloitte awarding it the fastest-growing tech company in Canada in 2012
and the fastest-growing software company in Nor th America in the last two years.

Product/Service:

Avigilon' s surveillance system is a fully digital IP-based Ethernet network system equipped with HD I P cameras and network
video receivers. I t is perhaps best known for having super high resolution 29 MP cameras and affordable syste ms able to
handle higher data rates due to some patented processes.
Avigilon' s High Definition Stream Management (HDSM) technology is, to a large extent, proprietary and has been designed
to preserve data and image quality, solving typical problems and li mitations associated with analog and analog/digital-hybrid
video surveillance systems and components. This technology is embedded in the companys products. Another major
competitive advantage is having one of the broadest ranges of cameras on the market from 1MP to 29MP.

Customers:

Avigilon does not have any single material customers. I ts systems are installed at more than 20,000 customer sites in more
than 80 countries. CMC Markets, The Point Casino, Avaya, Rogers Center, and SGL Arena are amongst some of its more
well-known customer s that have been made public. Avigilon's customer base also includes government entities, por ts,
utilities, stadiums, plants, public transport, retail shops, educational institutions and banking and finance centers.

Forward:

Avigilon has grown revenues by ~20x to $100 million from 2008 to 2012, driven by North America. The company is targeting
$500 million by 2016 and it believes that this goal is increasingly achievable with every passing quar ter. Wi th its strong
perfor mance, Avigilon can attract a stronger sales force and plans to strengthen its sales network in Nor th and South
Amer ica, EMEA and the U.K. while expanding its sales reach to more directly cover the APAC region. I t is also working to
develop business development teams to target enterprise oppor tunities. Other development initiatives include strengthening
brand identity and improving awareness and continued focus on innovation and product development.
Source: Yahoo Finance, Business wire, SB wire, Bloomberg, Retail Solutions Online, IMS research, Company reports and CIBC World Markets Inc
19
Exhibit 15. Awesense Wireless Electricity Anti-theft Market
Awesense Wireless Inc.

Private 2012 Sales: <$10 mil lion Employees: 20
CEO Mischa Steiner-Jovic Approx Growth Rate: n/a Located: Vancouver, B.C.

Company NY 1000%+ Founded: 2009
Investors: Various private investors
Sector:
Source: World Bank
Global Electricity Theft Utility companies have increasingly been forced to offset electricity theft by raising the
rates charged to customer s. Capital expenditures for utilities transmission and
distribution capital expenditures remain steady, but in many developing economies
stemming the electricity losses is trumping the need to replace aging infrastructure or
upgrade to smar t meters. In markets such as Brazil, India and Eastern Europe, over
20% of electricity is believed to be lost due to theft. Inflation and stagnant wages mean
consumer s can no longer afford the burden of theft costs and utilities have only now
begun to take notice.

Sub-Sector: N.A. Electricity Theft

Product/Service:

Awesense sells portable amperage monitors and software solutions that allow utilities to actively monitor their networks.
The solution is mobile, takes one to two days for readings to be collected and the sensors can be changed from the
ground.

Customers:

There is no dominant solution and no company currently offers Awesenses combination of solutions. Customers include a
number of utilities in Brazil and i n Mexico, Colombia, and Chile. Various pilots in a number of European and Asian markets
are under way.

Forward:

Having only begun commercial production in H2/2012, the company expects to continue to grow its pilots and customer
list in 2013. Hiring is occurring on a weekly basis and future growth of the company has the potential to be material.
Energy Losses By Region

Source: World Bank, Company reports and CIBC World Markets Inc.
20
Exhibit 16. Chango Real-time Bidding (Ad slots)
Chango Inc.

Private 2012 Sales: $25 million to $75 million Employees: 75
CEO Chris
Sukornyk Approx Growth Rate LY 600% Located: Toronto, ON

Investors: Extreme Venture Partners; iNovia Capital; Mantella Venture Par tners; Metamorphic Ventures; Rho Canada
Sector: Source:
eMarketer
Est. TAM 2011:
Est. TAM 2015:
U.S. Digital Ad spending

$32 billion
$55 billion
Online ad spending in the U.S. has grown rapidly and, at ~$40 billion, is expected to have
surpassed spending on print media ad spending in 2012, growing at a CAGR of 12% from 2012
to 2016. Globally, the share of online ad spending is expected to grow from 18% in 2011 to 26%
in 2016. Within online ad spending, Google and Yahoo are thought to represent 56% of total
online ad spending.

Social media ad spending, a subset of online ad spending, is gaining momentum and is
expected to grow from $3. 8 billion in 2011 to $9.8 bill ion by 2016, according to eMarketer.

In attempting to target an even more specific market, Real-Time Bidding (RTB) for display ads is
gaining tremendous momentum. An example of how it works is as follows:

A user visits a website (e.g., Facebook), which connects to an exchange server that suppor ts
RTB (Facebook Exchange). The bidding platfor m deter mine s if any active campaigns wish to
target this user and, if so, the ideal bid price. Advertisers are, therefore, able to target users
based on profile information collected over time rather than buy an ad impression based on the
website. Each par tner deter mines within its customer base the highest bidder and sends the ad
and bid to the exchange, at which time Facebook Exchange shows the ad with the highest bid.
This process takes place in less than a half second.

In September 2012, Facebook launched its Ad Exchange (FBX) by which, through their
partners, adver tisers can target these specific user s.
Sub-Sector:
Source: eMarketer

Est. TAM 2012:
Est. TAM 2016:
Real-time Bidding

$1.95 billion
$7.1 billion

Product/Service:

Search retargeting: Chango targets individuals who have not visited an advertiser's site but who have used a keyword on
search engines such as Google, Yahoo! or Bing that shows an interest in an advertiser' s site. I ts platfor m comprises more than
300 million Nor th American users with over 8 billion search events captured each month. This approach differs from
competitor s focused on site retargeting that talk only to those who have been to their site before.
Changos platform receives cookie data derived from scripts embedded in Changos partner sites on users arriving
from primaril y search engines. This data is combined with first-party data from 75 of the top 500 online retailers in the world.
This platfor m is unique in combining demand side and data management.
The Chango Platform: Chango also sells its platfor m as a service. Customer s nor mally include larger retailer s who prefer to
purchase a large amount of online ad space on their own.
Facebook Partnership: In December 2012, Chango was added as one of 13 approved PMD par tners allowed to purchase ads
on Facebook Exchange (FBX) real- time bidding system (RTB). These par tners bid for ad space on behalf of their customers.
Facebook serves over one billion ad impressions a day.

Customers:

Customer list includes 75 of the top 500 online retailers as well as top brands in verticals like finance, auto and B2B. Of sales,
90% are from the U.S. and the company operates four sub-branches there (New York, San Francisco, Los Angeles, Chicago);
the company also has an office in London, U.K.

Business Plan
Moving Forward:

Plans to expand through 50 new hires in sales, engineering, marketing and ad operations. Additional ad markets could be
added, including mobile and pre-roll video ads.
Source: Forbes, eMarket er, Company reports and CIBC World Markets Inc.
21
Exhibit 17. Creation Technologies Mid-market EMS
Creation Technologies LP

Private 2012 Sales: ~ $520 million Employees: 2,800
CEO Ar thur Tymos Approx Growth Rate LY: n/a Located: Burnaby, BC
Approx Growth Rate NY: 5%10% with the economy Founded: 1991

and mid-sized I T
companies
Investors: Birch Hill Equity Par tners; Creation employees
Sector: Source:
iSuppli Electronics Manufacturing Services
The Electronics Manufacturing Services (EMS) market has witnessed steady growth
of 14% since the lows of 2009, and the market for 2012 stood at an estimated
$387 billion. iSuppli expects the industry to slow to 4.5% in 2013 and continue to
grow at 5% from 2012 to 2016. Growth from consumer electronic fir ms, specifically
those making smartphones, tablets, PCs and Internet-ready devices, are expected to
offset a slowdown in legacy products. As per the latest survey by iSuppli, almost half
of the OEMs globally plan to reduce the total number of contract manufacturers in
order to maintain profitability and streamline operations, a strategy we have seen
with Blackberry and Juniper Networ ks.
The mid-tier EMS sector services small- to medium- sized OEMs and will grow with
its customer base. This is a clear opportunity for mid- market EMS companies that
provide high-quality services in faster-growing markets. Creation is the largest private
North American EMS company and 24
th
-largest EMS company in the world. Creation
is focused on the mid- market and has benefited from its growth for a long time.
Creation Technologies has grown with the market and been profitable for
22 consecutive years.

Sub-Sector:
Source: AMI Mid-market EMS

Product/Service:

Creation serves OEMs requiring medium-volume, complex design and manufacturing solutions in medical, instrumentation and
industrial, communications, computers and multimedia, aerospace and defense, transpor tation, environment and safety and
security. The company operates two design centers (Denver and Milwaukee) and 13 manufacturing locations (four in Canada,
seven in the U.S., one in Mexico and one in China).

Customers:

Creation provides EMS services primarily to mid- market OEMs in Nor th America as well as globally. Its customer base is
spread across industries previously mentioned, with the largest customers comprising 5% to 7% of sales. Creations top 10
customers account for ~22% of sales and there are no concentration issues. Generally, this customer sub-set picks up
mid-cycle once the overall economy s growth has been established.

Business Plan
Moving Forward:

Creation is a very well-run EMS company, serving small- to medium-sized IT companies. As the economy improves, so, too,
will its core customer base. We would expect mid- tier EMS players growth rate to accelerate mid-cycle. Creation management
believes that organic growth should also benefit from adding up to four additional design centers and fur ther increasing its
North American footprint. The companys 2014 target is $600 mil lion in revenue and a 7% EBI TDA margin on 65% to 70%
utilization. This goal depends on the economy and exchange rates. Over the next few years the company expects sales to
move to $750 million to $800 million in sales and over $50 million in EBITDA.
Source: iSuppli, AMI , New Venture Research, Company reports and CI BC World Markets Inc.
22
Exhibit 18. Desire2Learn Learning Management Systems
Desire2Learn Incorporated

Private Employees: 725
CEO John Baker Approx Growth Rate: 30%+ Located: Kitchener, ON

Investors: OMERS Ventures, New Enterprise Associates
Sector: Source: :
GAVE Advisors
Global Learning Market Sub-Sector: Learning Management Systems
Est. TAM 2012: $32.5 billion Est. TAM 2012: $1 billion
Est. TAM 2017: $65.6 billion Est. TAM 2017: n/a
Desire2Learn (D2L) is an education technology company that provides a state-of- the-ar t learning environment and solutions to engage and inspire
learners. The company is a global leader in cloud-based (SaaS) learning solutions and provides an open and extensible platfor m to more than 700
clients serving 10 million learners in higher education, K-12, healthcare, government and the corporate sector (including For tune 100 companies).
Desire2Learn has been in business for 14 years. It is a leader in an industry growing at a tremendous pace. I ts Learning Management System provides
a seamless experience for creation, delivery and management of cour ses, allowing user s to collaborate and connect around content and activities. I ts
recent $80 million investor funding will help propel long- ter m research and development and further international expansion plans. More than 40% of its
employees are devoted to research and product development.

Product/Service:

Desire2Learn Learning Environment is used for online, blended, or hybrid learning programs. I t offers scalable best-of-breed
teaching and learning tools, meets high standards of accessibility adherence, and includes power ful measurement and assessment
options. More than 90% of clients use D2L's SaaS Cloud. I t is the only eLearning provider to offer Student Success System, a
predictive modeling engine to forecast student outcomes. I t offers ex tensive consulting services to assist with state and federal
regulations and pending legislation. The company's offerings also include mobile technologies, learning analytics, electronic
portfolios, social media, open educational resources, and collaborative learning.

Customers:

D2L has over 700 contracted clients and over 10 million students and staff using its services. Of sales, 60% are to higher
education, 20% to K-12 and 20% to corporate. Customers include the New Zealand Ministry of Education, New York City
Department of Education, Harvard Business School and Bank of Montreal. Contracts tend to be signed from three to 10 years and
there is a 98% customer retention (over 100% revenue retention). Approximately 70% of sales are in the U.S. with the majority of
the rest (20%) in Canada.

Business Plan
Moving Forward:

As the EdTech market continues to grow, D2L plans to significantly ramp up hiring, expand the Desire2Learn footprint in emerging
markets and make investments to its infrastructure. As analy tics, mobile, and cloud computing are technologies that are pushing a
growing acceptance of new education models, the company is heavily investing in these areas. In 2013, D2L expects to continue to
profitably grow its sales throughout the world while maintaining its culture. D2L expects growth to accelerate internationally in a
number of major markets in Europe, Asia, Oceania and Latin America. The company will continue to expand materially in Nor th
Amer ica with schools and enterprises that seek to educate and evaluate its workforce.

New York City
Department of
Education
Case Study

In 2010, won a bid for an online platfor m and content after a competitive bidding process involving 14 other vendors.
Won the bid due to experience with large-scale implementations, platfor m design, user experience, configuration flexibility and
ability to implement in a timely manner.
The platforms are used for credit recovery (as a replacement for students re-taking a course in class), advanced placement
(students prepping for college) and blended learning (combining face- to- face student interaction in-class with computer out-of-class
learning).
Project went live in 2011 across a subset of schools and the rollout is ongoing across the city .
NYC DoE is the largest public school system in the U.S., serving 1.1 million students in almost 1, 700 schools.

University of
Guelph
Case Study
The University of Guelph had hit a wall in its eLearning mandate. The complexity of multiple systems, inability to back up course
content and lack of functionality and scalability limited the University to 45 online courses concurrently.
D2L was the only learning management system that provided the specific features that the school required (personalization for
instructor, responsive help desk, flexible and scalable).
Upon implementation, teachers and administrators were able to create their personalized student experience online, adapt to
changes based on modification requests and improve overall efficiencies.
The school increased its distance learning graduation courses from 55 to over 1,000 and undergraduate from 96 to over 223 five
years later. Partially as a result, undergraduate enrollment increased by 160% during that time. Growth was achieved with minimal
increases in personnel.
Source: GAVE Advisors, Company reports and CIBC World Markets I nc
23
Exhibit 19. EnWave Radiant Energy Vacuum For Consumption
EnWave Corporation

ENW TSX Venture 2012 Sales: ~$0.5 mi llion Employees: 24
Co-CEO Dr. Tim Durance Approx Growth Rate LY: 210% Located: Vancouver, B.C.
Co-CEO John McNicol
Sector: Radiant Energy Vacuum EnWave offers a varied technology for drying of materials known as Radiant Energy
Vacuum (REV) dehydration technology. Microwave energy is applied under vacuum
at lower temperatures. This method:
1) Takes minutes or hours versus days;
2) Preserves the nutritional value, flavor, color and texture better than spray & air
drying. Similar to freeze drying; and,
3) Offer s similar and potentially significantly lower processing costs.

Sub-Sector: REV For Consumption
Est. TAM: $232 billion

Product/Service:

Machinery for REV and MI VAP drying procedures for food & pharmaceuticals. Drying is completed for food in/on
baskets, belts and/or trays and in vials or bulk trays for phar maceutical products.

Customers:

Milne Fruit is the first commercial plant, delivered by Binder (86.5% owned subsidiary), production star t-up in April 2012.
Collaborations with Nestle, Hormel Foods, Merck Pharmaceutical, Kellogg Co., Ocean Spray and others.

Forward:

Sales consist of machine sales with ~30% gross margin along with a high- margin royalty rate based on the final product
sales. Targeting: 1) Tier 1 multi-nationals, targeting annual royalties of $5 million to $50 million per customer division at
full technology adoption ( three to five years from license); and, 2) regional partner ships with limited territory, targeting
annual royalties of $1 million to $5 million per partnership.
24
Exhibit 20. Global Relay Communications Database Management Systems
Global Relay Communications Inc.

Private 2012 Sales: ~$30 mil lion Employees: 240
Warren Roy, Founder and
CEO Approx Growth Rate: 50% Located: Vancouver, BC

Investors: No Venture Funding
Sector: Source: IDC Global Big Data Technology
Sub-Sector:
Source: IDC Relational Database Management Systems

Record-keeping of all communication is required by the financial sector' s key regulatory bodies. These requirements have led to the creation of a
technology sector that suppor ts it. The Financial Industry Regulatory Authority (FINRA) is recognized as the largest and most reputable independent
regulator in the U.S., overseeing more than 4,000 brokerage fir ms and more than 600,000 registered securities representatives. Member fir ms are
expected to meet SEC, NASD and FINRA rules, one of which is SEC Rule 17a-4 related to keeping non-rewriteable or non-erasable formats of broker-
dealer records. This includes records from email, instant messaging, SMS, BBM, Bloomberg and Reuters. Technology companies that provide the
technology and data warehousing that compete in this space include Autonomy (through its 2007 acquisition of Zantaz for $375 million), Global Relay,
Iron Mountain, Microsoft and LiveOffice. Global Relay is the leader in the financial services community and is entrenched as the Message Ar chiving
Vendor in FINRA's Compliance Resource Provider Program. This status was won after a comprehensive two-year RFP with six competing fir ms.

Product/Service:

Global Relay offers services under the umbrella of unified communication designed to meet the requirements of the financial
community for message archiving required for compliance purposes. The company's largest offer ing is the Global Rel ay Archive,
which captures all internal and ex ternal electronic messages in real time. This includes email, instant messaging, Thomson
Reuters, Bloomberg, mobile messaging, social media messaging, ICE chat and more. Each day Global Relay will receive audit
requests for 15 to 20 data exports. Global Relay owns its entire vertical, including the land, building, servers and proprietary
software (and gains margin savings at each level) as well as a plan for proper scaling of server sizes and software upgrades. In
2013, Global Relays data centre was completed. This green facility in Vancouver, BC can offer services at ~45% of the cost of
existing data centers by leveraging evaporative air cooling technology, eliminating the need for mechanical air conditioning
systems. In addition, a flywheel UPS (Uninterruptible Power Supply) is used instead of toxic lead/ acid battery systems.

Customers:

Global Relay serves about 80% of the hedge fund market and 35% of all broker/dealers in Nor th America. Approximately 70% of
sales are from the U.S., 25% from Europe and 5% from Canada. Global Relay services are priced per user per month. Global
Relay serves 16,000 customers who pay on average $10 per user per month.

Business Plan
Moving Forward:

Global Relay is targeting fur ther penetration of the Nor th American broker/dealer market, currently just over one-third tapped,
including close to 80% of Nor th American hedge funds. Global Relay expects banking wins are expected to lead the company s
revenue to over $100 million in less than five years. Insurance and medical are also areas that could see tremendous growth off
a small base if and when this market segment becomes a focus. Longer ter m Global Relay has a revenue goal of $1 billion if it
successfully enters the insurance and healthcare markets.

Competitive advantages include: Cloud services that allow for archiving and searching; Global Relays position as the Message
Archiving Vendor in FINRA's Compliance Resource Provider Program; and, its low-cost data centre that meets the scalability,
perfor mance, and security needs of global banks and enterprise customers.
Another inherent competitive advantage is its Canadian location. Under the U.S. Patriot Act, section 215, the FBI can obtain a
court order to access records of an individuals ex-parte without disclosing the reasons why. This has acted to steer a number of
foreign companies away from some of the larger U.S. cloud-based archiving companies.

New products planned for 2013 include: Global Relay Archive for Mobile, a new end-to-end technology to capture tex t
messaging and call logs from mobile phones without a dependency on additional hardware or software. Also slated for 2013 will
be the next generation of Global Relay Archive. Global Relay spent over three years and $8 million redesigning the core of its
Archiving technology in order to provide the scalability necessary to service large enterprise customers such as global banks.
The Global Relay Next Generation Archive is a single- message store solution scalable to support hundreds of petabytes of
normalized message data.

25
M&A has been a steady strategy for Global Relay and the company expects to continue it in order to grow market share more
rapidly. It is possible that Global Relay makes an acquisition to better position the company in either the insurance or health care
markets.

Finally, Global Relay Message, an enterprise messaging and collaboration platfor m, is being built specifically for regulatory
compliance in the financial sector. It will suppor t conversational trading, providing a more secure, more compliant alternative to
systems used currently such as Yahoo Instant Messaging and AOL I nstant Messenger. The company is position ed to leverage
its relationships with Thomson Reuters, FINRA Broker-Dealers, Hedge Fund Prime Brokers and global banks, as well as its
archiving and messaging expertise, to create a viable platform.
Source: IDC, Deloitte, Company reports and CIBC World Markets Inc
26
Exhibit 21. Halogen Software Talent Management Software
Halogen Software Inc.

HGNTSX 2012 Sales: $38MM Employees: 297
Paul Loucks, CEO Approx Growth Rate: 32% Located: Ottawa, ON

Sector: Source: IDC Talent Management Opportunity Human capital is a major expense for most organizations across almost all industries.
It is estimated that, in 2012, $8.5 trillion was paid to employees in the U.S.
(approximately 55% of GDP). While the total spend is enormous, it has been
estimated that top per for mers within an organization can produce 3x to 10x the output
of an average per for mer in the same job. This means that extreme cost savings can
be generated if a proper evaluation and identification of employees is under taken. In
an increasingly competitive marketplace, organizations are finally beginning to realize
that this is an integral component of running a profitable business. In a 2012 survey
conducted by PricewaterhouseCoopers, 77% of CEOs planned to revise their talent
management strategies within the next year.
While a number of larger fir ms cater to this market, including SAP ( through
SuccessFactors), Oracle (Taleo) and IBM ( through Kenexa), Halogen focuses on a
distinct mid-market tier of companies, offer ing quicker implementations and ex tensive
and personal IT suppor t. Ver tically integrated modules within individual markets, such
as for healthcare or financial services, have also helped differentiate its products. I t is
estimated that there are over 110,000 mid- market companies (100 to 10, 000
employees) in Nor th America and 300,000 worldwide.

Sub-Sector:
Source: IDC Talent Management Software Sales

Product/Service:

Competitive
Advantage:
Software-as-a-Service (SaaS) cloud-based talent management solutions. Halogen s TM suite has a set of software modules
that provide integrated TM solutions. Each module is built organically and integrated into one platfor m. Examples of modules
include:
eAppraisal Per for mance management: Allows customers to manage per for mance feedback and recognition, assess
competencies, create per for mance appraisals, and maintain employee talent profiles, among other abilities.
Halogen e360 multirater is integrated into eAppraisal for feedback during appraisal and assessment. Allows comments to
be anonymous and for ex ternal viewing for customers.
Competitive advantage is support, with over 90% of customer calls answered with live representatives within 60 seconds.
While a number of larger fir ms cater to this market, including SAP ( through SuccessFactors), Oracle (Taleo) and I BM
(through Kenexa), Halogen focuses on providing a highly differentiated solution specifically targeted at the mid- market. This
approach contrasts with complicated solutions targeted at large enterprises, which typically involve long implementation
cycles and extensive information technology suppor t. Halogen enhances its solution with vertical offerings that include
features, services and content for specific ver tical market segments, including healthcare, professional services, and
financial services, which has helped it to differentiate itself from hor izontally focused solution providers without limiting the
companys ability to scale. I t is estimated that there are over 110,000 mid- market companies (100 to 10,000 employees) in
North America and 300,000 worldwide, representing a total addressable market of $15 billion annually. Market penetration
rates for dedicated TM applications in the mid-market are estimated to be only between 5% and 10%. Halogen has
established a leadership position in providing a comprehensive TM solution in the mid- market, according to Gartner.
Halogens competitive advantages are its mid- market focus (both in its solution and go- to- market strategy), its vertical
offerings, and its highly customer- focused approach, which has resulted in higher customer satisfaction than that of its
competi tor s and a customer retention rate greater than 90%.

Customers:
The company has over 1,750 customers, with its top five customer s representing less than 6% of revenue. No one company
was more than 2% of sales in 2012. Of customers, 90% elect on-demand access. The industries they fall under include
education, financial services, healthcare, hospitality, manufacturing, professional services, as well as the public sector.
Subscriptions are typically two years with automatic renewal.

Forward:
1) Halogen completed its I PO on May 17, 2013. The companys key growth strategies are:
2) 1) Aggressively expand customer base as the talent management market is large and under-served, by increasing brand
marketing and sales professionals in Nor th America, the U.K., Australia and other areas where Halogen has no presence;
3) 2) Retain and expand business with existing customers through follow-on sales of new modules and additional seats;
4) 3) Expand total addressable mar ket through new product offerings; and,
5) 4) Consider acquisitions in businesses, technologies and solutions that complement existing offer ings in an effor t to
accelerate growth, enhance capabilities and broaden current solutions.
Source: Gartner, I DC, Company reports and CIBC World Markets Inc
27
Exhibit 22. HootSuite Media Social Media Market
HootSuite Media Inc.

Private 2012 Sales: ~$70 mil lion Employees: 290
CEO Ryan Holmes Approx Growth Rate LY: 500%+ Located: Vancouver, B.C.

Investors: OMERS Ventures; Millennium Technology Ventures; Blumberg Capital; Hearst Ventures
Sector: Source:
Gartner Social Media Market
Social media is arguably the fastest-growing industry in technology today. Growth is being
driven by an increasing spend on customized tex t ads, localized promotions and mobile
Internet and app usage. At the same time, advertisers are expected to keep up not just
with their market but with their content on the dozens of popular and ever-changing
emerging social media sites, including Facebook, Twitter, LinkedIn, Tumblr, Instagram and
Pinterest.
Historically, the lack of direct sales (a direct link from social media to the top 500 online
stores accounted for <1% of sales on Black Friday, according to I BM) has given
advertiser s a reason to largely ignore a major effort here. However , the successful Obama
2008 and 2012 social media campaigns along with those of the Blair Witch Project, Dove
and Hertz have begun to show advertisers that brand per ception, buzz and interaction can
affect a consumers opinions and eventually lead to sales at a much lower cost. One of the
biggest trends, however, that is difficult to ignore is that 58 million Americans use social
sites daily, spending 3.2 hours a day here (ages 16 to 64, according to Nielsen). At the
same time the number of U.S. households without televisions has grown from 2 million in
2007 to 5 million in 2012 and this number is expected to grow. As consumers focus
continues to shift, so, too, will ad budgets. Reaching the millions across the various social
media platforms will be one of the biggest challenges facing advertisers.
Est. TAM in 2011: $12 billion
Est. TAM in 2016: $34 billion

Sub-Sector:
Source BIA/ Kelsey Social Media Ad Market
Est. TAM in 2012: $4.6 billion
Est. TAM in 2016: $9.2 billion

Product/Service:

HootSuite's web-based social media management system allows users to monitor, manage and view analy tics of all
major social media sites simultaneously. The platfor m allows corporate customers to run campaigns across multiple social
networks through a dashboard. HootSuite's inter face is available on the web and as an app on popular OS platfor ms. In
September 2012, HootSuite added conversations (a messaging service) to its dashboard, whereby employee accounts can
be segregated into groups to foster internal communication. The tool also allows users to assign and delegate tasks and
monitor execution. The company recently acquired Seismic in September 2012 to improve its enterprise reach. HootSuite
offers a free, Pro ($10/ month) and premium enterprise model starting at $1,000/ month. The company launched its first paid
product in 2011 and the company expects sales to grow materially in 2013.

Customers:

HootSuite has over 5 million users. Customers include the NBA, Pepsico, McDonalds, Seagate and Lamborghini. About
40% of HootSuites users are outside of Canada.

Business Plan
Moving Forward:

HootSuite recently added real- time chat to its dashboard and continues to increase options for its enterprise customers. The
company plans to for m several more par tnerships with new growing platfor ms as well. HootSuites eventual goal is to grow to
become a disruptive force in social media.
Source: Gart ner, BIA/Kelsey, Nielsen, Company reports and CIBC World Markets Inc.
28
Exhibit 23. Keek Social Media Ad Market
Keek Inc.

Private 2012 Sales: <$10 mil lion Employees: 50
CEO Issac Raichyk Approx Growth Rate LY: n/a Located: Toronto, ON

Company NY n/a Founded: 2011
Investors: AlphaNor th Asset Management; Plazacorp Ventures; PowerOne Capital; Pinetree
Capital; Whitecap Venture Partners; AGF Investments; Cranson Capital
Sector: Source
Forbes
Global Online Ad Spending
Social media tops the list of industries with the most potential for growth over the nex t five
years. As is apparent from Facebook and LinkedIn valuations, mature social media sites
are still being valued at 5x+ forward Price/ Sales or $3 to $5 per user. While thousands of
social media sites exist, scaling to the point where advertising revenues pay for in-house
infrastructure or CDNs, salaries and space nor mally requires venture capitalists for
early-stage funding.
Perhaps the most impor tant statistics for social media start-ups are the number of monthly
active unique users and the number of net new subscribers/ users per month. Assigning a
Cost Per 1,000 I mpressions (CPM) rate that advertisers would be willing to reasonably pay,
investors can then gain a sense as to when the company could hit profitability and be
self-sustaining.

Sub-Sector: Source
BIA/Kelsey:
Social Media Ad Spending

Product/Service:
Keek allows users to quickly and easily post 36-second video clips from their mobile phones or desktops. Keek differs from
YouTube not just in the length of video allowed but in its ease of posting keeks and distribution via Facebook, Twitter and
Tumblr from a mobile phone. The vision for Keek is for it to become a communication tool similar to Twitter and Instagram,
with followers receiving videos instantly rather than tex t or pictures.
In February, Keek had 150 million visitors who viewed 3 billion pages during that month, or 20 views, on average, per
visitor. During the month, Keek also had 25 million unique users. 200,000 new users continue to register daily. Users create
more than 100,000 keeks per day. These figures compare to Facebook in the year prior to overtaking Myspace.com in the
summer of 2007 with 50 million unique users and 250,000 new users a day. Keek users create more original content than
all the known social video competitors. Twitter's social video star t-up, Vine, which offers 6 second clips, has a small user
lead in the U.S. but Keek has a lead in the rest of the world.

Customers:
Users are generally young, wi th 27% 13-17 years old, 38% 18-24, 20% 25-34, 8% 35-44 and 4% 45-54. The gender
demographics are male 51%, female 49%. Mobile devices account for 95% of keeks posted and 95% of page views. About
50% of users are from the U.S. with large followings in the U.K., the Middle East and Latin America. Among their most
well-known active user s are Kim Kardashian and the Kardashian/Jenner family, Ariana Grande, Victoria Justice, Adam
Lamber t, Tom Daley, the NFL, PK Subban, and many of the Jersey Shore cast.
Forward:
As of February 2013, the number of Keek registered users has grown by 6 million month over month and page views 400%
in two months. The immediate goal is to expand the server infrastructure internationally. Keek expects to remain ad free for
the immediate future, in order not to inter fere with the user experience. The company is well positioned to eventually
dominate the rapidly growing mobile adver tising market, as shor t social videos provide a number of advertising oppor tunities
on the web and mobile platfor ms. Funding should not be an issue, as there are few social media sites in the world posting
the kind of growth Keek shows. Growth in Nor th America, Europe, Latin America and the Middle East is expected to
continue. The Keek app has been ranked No. 1 in the social networking category in 13 countries, including the U.K.,
Argentina and Saudi Arabia. I t has ranked as high as second in the U.S. $30 million has been raised to date. ~$50 million is
required to fund growth of the Keek network in the coming two years.
Establishing Keek s business model is expected to take place within a year, according to Keek. One model could be based
on ads within the keek player after a keek. For example, this ad model on 3 billion monthly page views at an average CPM
of ~$0.50 equates to an annualized sales rate of $18 million. Ad rates for Facebook are estimated at $0.25, Android rates at
about $0.90 and mobile across all platfor ms remains very attractive at about $1.30. Assuming traffic grows 50% mon th over
month, the site could potentially have the ability to generate well over $100 million from this one ad unit alone by December.
The company is planning several other ad units, some of which it believes may be even more lucrative. These include, for
example, promoted keeks and klusters. Ads placed on the mobile app would likely yield even higher rate s.

Source: Forbes, BIA/Kelsey, Opera, Company reports and CIBC World Markets Inc.
29
Exhibit 24. Kik Interactive Mobile Messaging
Kik Interactive, Inc.

Private Sales 2012: NA Employees: 29
CEO Ted Livingston Approx Growth Rate: NA Located: Waterloo, Ontario

Company NY NA Founded: 2009
Investors: Foundation Capital; RRE Ventures; Spark Capital; Union Square Ventures.
Sector: Source:
Mobithinking I M Loss In SMS Carrier Sales
The global instant messaging market, driven by the growth in mobile messaging apps and
data plans, cost carriers approximately $4 billion in lost tex ting revenue in 2012. As per
Infor ma, OTT (Over The Top) messaging traffic (19.1 billion OTT messages/ day in 2012)
has surpassed SMS traffic (17.6 billion) although the number of SMS users (3.5 billion)
remains far ahead of OTT messaging (600 million).

This growth in OTT messaging comes at the expense of mobile texting and previously
popular landline services such as MSN Messenger, recently shut down by Microsoft. Among
the most popular social media OTT apps are Facebook Messenger, WhatsApp (estimated at
over 200 million users who pay $0.99/year, primarily in Africa, Latin America and the Middle
East), Viber (175 million users, free), Kakao (80+ million users primarily in Southeast Asia
and Eastern Europe, free), Voxer (~70 million users, offered for free primarily in the U.S. but
seeing decreasing interest after Facebook shut down connections via Facebook friends in
January), WeChat (300 million users primarily in Asia, free) and Kik (over 50 million users,
primarily in Nor th America and Europe and also free). Currently, the majority of these
platfor ms are in growth mode, looking to establish user s at the expense of sales. Kik has
raised $29.5 million over two rounds of funding. The first round was used to help it grow at
the pace of 200, 000 user s a week. I ts latest $19.5 million round is focused on looking to
expand its Cards apps, with the goal of creating its own platform or app purchases within
the Kik App itself.

Sub-Sector:
Source:
Mobithinking I M Accounts Globally
Est. TAM 2011: 3.1 billion

Sub-Sector:
Source:
Mobithinking Mobile Data Plans Globally

Product/Service:

Kik is a free mobile messaging app launched in October 2010. Today, Kik has more than 50 million users across all the major
mobile OS platfor ms. Approximately 200,000 users are being added every day, allowing users to share text, pictures, videos
and voice messages.
The company is expanding from a simple messaging app to a platfor m. An example of this would be its recently launched
Cards, a set of lightweight apps that can be sent in open conversations and that will soon be opened to outside developers.
Current examples include YouTube, Reddit, I mage Search, Sketch, and Squared Cards. The Cards are being written in
HTML5, allowing, for example, a video to be easily shared within Kik (and go viral) versus other messaging apps that require
the App to close in order to view the content. Also, compared to WhatsApp, a username is used rather than phone numbers
and, therefore, provides increased privacy.

Customers:

The U.S. is Kik' s largest market, accounting for 50% of its subscriber base, while two- thirds of its subscriber base is on the
Android platform. Kik foresees strong penetration in Nor th America, Nor thern Europe, Saudi Arabia and Australia.

Business Plan
Moving Forward:

Kik expects to generate sales through: 1) banner ads; 2) gaming and apps, splitting revenues with developers; and, 3) unique
technologies. The strategy that appears most promising is the Kik Cards app model, which already has 25 million installs since
November 2012. Even if only 5% of the currently growing userbase pays potentially $1 per month for unlimited downloading or
another feature, gross revenues would surpass $10 million a year. The CPM model could be a form of revenue sustainability
and Kik could possibly extract over half a million per year with the current base if it chose to.
Source: Marketwatch, Mobithinking, NY Times, Techc runch, Forbes, Financial Post, CCA Ev ents, Business I nsider, Company reports and CIBC World Markets Inc.
30
Exhibit 25. Kinaxis Cloud-based Supply Chain Management
Kinaxis Inc.

Private Sales: $50 million+ Employees: 240
CEO Douglas Colbeth Approx Growth Rate LY: 25% Located: Ottawa, ON

Investors: HarbourVest
Sector: Source:
Environmentalleader Supply Chain Management Software Market
Sub-Sector:
Source: Forbes Cloud-based SCM

Est. TAM 2011: $7.7 billion Est. TAM 2010: $826 million


Effective supply chain management can save significant costs and time. The $8 billion spent annually on supply chain management software is
undergoing material growth as businesses become increasingly aware of the Total Cost of Ownership (TCO) and benefits of SaaS supply chain
solutions. The impor tance of operational reliability, predictability and agility is essential in todays highly volatile and complex marketplace. Poor supply
chain management can translate into holding inventory longer, increasing capital costs and decreasing customer satisfaction as poor service leads to
lost sales and lower margins over time. Major supply disruptions (such as the Thailand floods, causing semiconductor supply shor tages and
challenging the top line for technology companies around the world) can change an organizations per for mance abruptly if the capabilities are not in
place to assess its impact to inventory and product availability and, subsequently, respond accordingly. The growing number and magnitude of risks
have helped increase awareness and recognition of the impor tance of supply chain management. As a result, supply chain management soft war e is
witnessing mater ial growth as businesses seek new capabilities that can address current business realities. About 80% of the SCM industry sales
come from North America and Western Europe, while much of the rest of the world remains untapped.

The market is dominated largely by conglomerates SAP (20% market share) and Oracle (17%), with a number of players including Ariba, JDA
Software, Manhattan Associates and Kinaxis. All major players continue to grow, with the largest source of growth being market penetration v ersus
market share gains at this point.

Product/Service:

Since 2005, Kinaxis has operated as a SaaS business model, the first in the supply chain sector. Kinaxis has a single
product, RapidResponse, which can be broadly applied across the organization to address multiple supply chain functions,
including inventory management, sales and operations planning, capacity and constraint management, demand planning,
supplier collaboration and integrated project management, to name a few.

The products core competitive advantage is that it ar ms enterprise manager s with complete supply chain visibility (including
real-time data updates when and as necessary), along with deep analytical capabilities to per for m rapid scenario planning
and analysis. RapidResponse is highly configurable to the enterprise, depar tment or functions analy tical and repor ting
needs. The planning engine integrates with Enterprise Resource Planning (ERP) systems to offer real- time planning and
scenario simulation capabilities not otherwise available. Users can access the service from any web browser and in a highly
secured manner with near 100% uptime.

The model is one where the customer decides the functional processes for which it will leverage RapidResponse and
subscribes for those application services under the SaaS offering. Customers typically subsequently expand their initial
configuration, fur ther contributing to organic revenue growth.

Customers:

Customers include some of the largest technology hardware and manufacturing companies in the world, including Agilent,
Benchmark, Research In Motion, Celestica, Cisco, Honeywell, Jabil, Volvo and a number of other billion-dollar companies.
Deals are nor mally signed for three to five years. Kinaxis' business model is achieving an 80%/20% mix of
recurring/professional services revenue with growth rates in the mid-20% range. This model has delivered industry-leading
gross margin and EBITDA.

Business Plan
Moving Forward:

Through its expanding par tner network, Kinaxis is targeting to further accelerate annual organic growth to the 30% range.
Source: Environmentalleader, Company reports and CI BC World Markets Inc
31
Exhibit 26. MOSAID Technologies Intellectual Patent Market
MOSAID Technologies Inc.

Private 2012 Sales: ~$100 million Employees: 80+
CEO John Lindgren Approx Growth Rate LY 20% Located: Ottawa, ON

Est. Forecasted Growth By Company
NY 30%+ Founded: 1975
Investors: Sterling Partners
Sector: Source:
MarketsandMarkets Global I ntellectual Property Market
Sub-Sector:
Source:
MarketsandMarkets Unlicensed Telecommunications I P Market
Est. TAM 2011: $240 billion Est. TAM 2012: ~$4 billion assuming a 2% Royalty
Sub-Sector:
Source:
MarketsandMarkets Semiconductor I P Market

Patent licensing is now an established market, with over $200 billion a year collected globally and double-digit growth expected to continue over the next
five years. Qualcomm tops a list of billion-dollar pure-play patent licensing companies that include InterDigital, Acacia Research, Tessera Technologies,
Wi-LAN, and MOSAID, among others.

The role of patent specialists, whose business is entirely that of monetizing patents, has gained significant momentum over the last few years. RIMs
$600 million settlement with NTP in 2006 and Nokias $2.3 billion pay ment to Qualcomm in 2008 were major catalysts in attracting attention to the space.
The biggest attention-grabber, however, was the $4.5 billion sale of Nor tel's patent portfolio in 2011 to a consor tium of technology companies headed by
Apple and Microsoft. This was followed in 2012 by the $6 billion (net of cash and deferred tax) sale of Motorola to Google pr imar ily for patents in a deal
that many felt was overpriced. Despite the headline news, however, settlements with OEMs remain difficult given a lack of experience by the patentholder
in back-engineering a process to deter mine infringement, initiating and proceeding through two or more years of expensive litigation, and, perhaps most
importantly, lacking credibility to negotiate in the eyes of the defendants.

MOSAIDs roots began with key inventions related to circuit technologies used in DRAM back in 1975. I ts history and continued innovation as a practicing
memory entity render a license with MOSAID, as viewed by infringers, the cost of doing business. This makes negotiations and renewals less lengthy and
costly. This same credibility has spread to communications and wireless with the signing of Nokia and Samsung wireless to licenses, and eventually to
Nokia viewing MOSAID as credible enough to monetize a por tion of its own patent por tfolio.

Product/Service:

MOSAID licenses its por tfolio of approximately 6,000 patents, including Core Wireless (a large portfolio of wireless patents
originally filled by Nokia). The patent portfolios owned by MOSAID include semiconductor, wireless, micro components and
power-over-Ethernet patents. I t also purchased hybrid electric vehicle patents in 2012 from Azure Dynamics and believes it can
leverage its electrical engineering talent here.

Customers:

In total, the company has signed over 70 agreements, contributing to over $100 million in license revenues in 2012. The por tfolio is
well diversified and licensees include Samsung, Texas Instruments, Hynix, Micron and Nokia.

Business Plan
Moving Forward:

MOSAID has nine licensing programs, including the Core Wireless program. Over the next three to five years, the company is
targeting $200 million$500 million in revenue. MOSAID also believes the Core Wireless program will generate in excess of
$1 billion in revenue over its life. MOSAIDs business model provides significant leverage once its fixed cost base has been
covered. The company is targeting its first material Core licensing agreement in 2013.

Core Wireless holds the assets of 2,000 wireless patents from Nokia. These patents cover over 49 different countries. Through
Core Wireless, MOSAID is now pursuing royalty agreements with all the major unlicensed OEMs, including Apple. MOSAID
expects that total royalties from Core Wireless will surpass $1 billion, even assuming no growth from the current major vendors. By
2014, four of the largest five wireless vendors will be unlicensed to Nokia. Many of Nokia s key patents are good for another
10 years and agreements covering this period should be signed.
Source: MarketsandMarkets, Company reports and CI BC World Markets Inc
32
Exhibit 27. Nanotech Security Anti-counterfeiting Security Feature
Nanotech Security Corp.

NTS TSX Venture 2012 Sales: < $10 mi llion Employees: 11
CEO Doug Blakeway Approx Growth Rate LY n/a Located: Surrey, BC

Est. Forecasted Growth By Company
NY 100%+ Founded: 1985
Pro Forma Net Cash ~$1 million
Market Capitalization $25 million
Sector: Global Counterfeiting Market Sub-Sector: Anti-counterfeiting Security Feature Market
Est. TAM 2012: $650 billion Est. TAM 2012: ~$20 billion

Sub-Sector: Hologram Market Sub-Sector: Security And Brand Authentication
Est. TAM 2012: $8 billion Est TAM 2012: $2.5 billion
According to the FBI, counter feiting is the crime of the 21st century. Counter feiting has moved beyond currency and now impac ts several industries,
including consumer electronics, luxury brands, spor ting equipment and phar maceuticals. Examples include over $3 billion in counter feit printer
cartridges sold last year and $75 billion of counter feit pharmaceuticals. The International Chamber of Commerce estimates that the global economic
value of counter feit and pirated products is over $650 billion annually and it was anticipated to increase to $1.77 trillion by 2015.

Governments and corporations use several technologies to reduce counter feiting. The most common are holograms and color-shifting ink but others
include water marks, microtex t, security threads and UV and IR strips. Given that holograms and color shifting ink are technologies that are over 40
years old, counter feiters have become experts at reproducing fakes. Holograms are generally stuck onto packaging or products and can easily be
removed and placed on higher-value counter feit goods. Nanotech Secur ity has developed a new, more secure and more versatile technology that is
directly embedded onto packagi ng or products, eliminating the ability to remove the security feature.

The estimated US$8 billion global holography market comprises different sectors, such as scanning & imaging, testing, information storage, optical
elements, etc. One of the fastest-growing sectors is the security and brand authentication sector, currently valued at approximately US$2.5 billion. Since
the first implementation of holograms on commer cial products in 1982, more and more products are relying on security holograms as the first line of
protection against counter feits. Some of the major sub-sectors include banknotes ($350 million), government IDs ($635 million) and brand pr otection
(~$1 billion), according to the International Hologram Manufacturing Association: Holograms: The First Line of Defense in the Battle against Packaging
Counter feits (July 18, 2008).

Product/Service And
Competitive Advantage:

Nanotech Security has developed a security feature based on nanotechnology called KolourOptik. KolourOptik is
constructed of hundreds of millions of nano-holes, smaller than a wavelength of light. When light hits the holes it captures
and reflects only a single frequency of light, creating unique optical images of pure HD color without the use of any dyes or
pigments. Kolour Optik can be embedded on almost any sur face, including poly mers, packaging, metal or cloth. Given its
optical characteristics, KolourOptik has overt, covert and forensic security features demanded by government agencies for
the banknote industry.

Customers:

Nanotech has no material customers but is in discussions with several Federal Reserves about using KolourOptik on
banknotes and coins. While the sales cycle for these customers is generally long (about a year), the company is also in
discussions with several consumer electronics companies that are looking to use Kolour Optik for devices like smartphones,
laptops and printer car tridges. The sales cycles for these opportunities are much shor ter and management anticipates initial
contracts and revenue by the end of 2013.

Forward:

Nanotech is expected to generate two types of revenue: 1) traditional revenue from the design and manufacture of the
master copy of the design; and, 2) royalty revenue per 1,000 KolourOptik nono- tags produced. While pricing will vary
depending on the complexity of the design and the volume of tags ordered, management anticipates royalty rates of between
$2 to $18 per 1,000. The focus will be on the recurring royalty revenue as gross margin is anticipa ted to be 90%+.

Initial contract wins would validate the technology and star t to generate recurring royalty revenue for the company. Nanotech
is in discussions with several consumer technology fir ms and if any one of these materialize into contracts, management
anticipates the company to be in a break-even situation. Initial discussions are also taking place with clothing brands,
sporting goods brands and phar maceutical brands interested in using KolourOptik.
Source: Company reports and CIBC World Markets I nc
33
Exhibit 28. PointClickCare.com SaaS For Skilled Nursing
PointClickCare.com

Private 2012 Sales: $59 million Employees: 600
CEO Mike Wessinger Approx Growth Rate LY: 34% Located: Mississauga, ON

Investors: JMI Equity
Sector: Source:
MarketsandMarkets EHR Software Market
Sub-Sector:
Source: IDC SaaS For Skilled Nursing

Est. TAM 2012: $4.3 billion Est. TAM 2011: <$2 billion
The adoption of Electronic Medical and Health Records (EMR) in the U.S. has grown steadily, with over 77% of U.S. hospitals having achieved a
measure of basic EMR usage, up from 71% in 2011. In the U.S., the market is benefiting from the American Recovery And Reinvestment Act (ARRA)
financial incentives for moving to paper less records as well as from cost savings from the desire to go paperless and reduce manual errors. At the
same time, an aging population is pushing pr ivate funding for assisted nursing higher every year. Overall EHR adoption rates are thought to be highest
in the U.S. and Canada and companies offering EHR solutions in Nor th America are considered first movers versus the rest of the world. In APAC, the
EHR market is expected to rise from $1.2 billion in 2012 to $2.2 billion in 2018.

Software for long-ter m care is the target market. IT as a percentage of the long-ter m care market is ~1% of the total market, which is estimated at
$250 billion for long- term care. Ver tical SaaS apps are, and will remain, one of the fastest-growing segments of this market. PointClickCare.com (PCC)
leads the market with a 40% share. Its main competitors have lost share and include American Health Tech, Health Medx and MDI Achieve.

While non-profit organizations, such as the College of Physicians and Surgeons of Ontar io (CPSO) , have attempted to rectify the issue of record losses
by setting rules such as a 10-year minimum record requirement, human error still exists and no real attempt has been made in ter ms of achieving
actual solutions within government. This has opened up the market to over 700 companies offering some kind of EMR solution ov er the last two years.
Longevity and viability of these solutions, however, are proving to be more of an unknown and healthcare facilities are increasingly turning to proven
solutions.

Product/Service:

PCC is focused on long- ter m care & post acute care providers (i.e., Nursing Homes, Assisted Living Facilities and Home
Health agencies). PCC offers a web-based Software-as-a-Services (SaaS) solution that includes an integrated and
streamlined approach to clinical, billing and administration functions of various tasks involved in the EHR process. Examples
of its products include care plans, assessments, diagnosis, medication management, billing and A/R, CRM, and accounting
functionality, each module integrated with other modules. For example, a change in the assessment tool triggers changes in
care plans, billing and medical diagnoses.

PCCs business model is to charge monthly per bed or unit. PCC charges up to $0.50 per day per patient. Additional revenue
comes from add-on modules, including point of care and pharmacy integration.

PCCs competitive advantage comes from offering the industrys most comprehensive EHR that integrates clinical and
financial records. I t is a full SaaS offering that can scale beyond its competitors. I t also offers dozens of add-on modules,
built-in safeguards to help avoid mistakes. PCC s offering is suppor ted by 200 developers. I ts nex t phase of product
developments include broadening the offering to existing customers for products that are not fully integrated or
automated currently, such as therapy, physician chart access, and medical lab results.

Customers:

PCC serves 8,500 homes within its target market in the long-ter m care sector in Canada and the U.S. PCCs core market is
skilled nursing facilities, in which it has a 40% market share in North America. PCC is penetrating the assisted living market
and holds the leading market share with approximately 12%. The company serves nine of the top 10 long- ter m care providers
in North America. All sales are undertaken through direct sales channels. The client base of more than 1,800 companies
includes HCR Manor Care, Genesis, Ex tendicare, Golden Living and Kindred Healthcare.

Business Plan
Moving Forward:

PCC plans to focus on its market share organically and through tuck-in acquisitions. Growth from exi sting customers would be
through expanding its product line to include services to adjacent markets, such as retirement homes, home health, dietary,
and pre-admission. The company estimates that 2013 sales should be at least $80 million with gross margins on recurring
revenue running at an impressive 82%. These high margins allow PCC to choose how aggressive it wants to be on any
expansion of its sales force and suppor t in Nor th America and the rest of the world.
Source: IDC, MarketsandMarkets, Report Linker, HER Int elligence, EMR Daily News, Health and Management, Company reports and CIBC World Markets Inc
34
Exhibit 29. Real Matters Property Inspection Marketplace Insurance
Real Matters Inc.

Private 2012 Gross Sales: ~$135 million Employees: 230
CEO Jason Smith Approx Growth Rate: 75% Located: Markham, ON and Buffalo, NY

Investors: Jason Smith, Whitecastle Investments, Altus Group, Wellington Financial
Sector: Source:
IBIS
Property Valuation
Marketplace Mortgage
With the bursting of the housing bubble and the introduction of the Dodd-Frank Act in 2010, a
firewall was mandated between front-line loan officers in banks and appraisers, creating a larger
role for intermediaries or Appraisal Management Companies (AMC). While the overall appraisal
market dropped from $5 billion at its peak in 2008 to $2.5 billion today, the increased rate of full
appraisals on mor tgages and the increased outsourcing of the appraisal management function
actually translated into a boom for AMCs. Traditional AMCs, however, have a high cost to
manually manage an appraisal and, with increasing regulation and complexity in the industry,
their ability to invest funds in technology and renovate their business models to dr ive better
appraisal outcomes has been limited. Over the last nine years, Real Matters has spent tens of
millions on technology and analytics to measure the performance of and drive competition
among over 23,000 residential appraisers across North America. The result has been significant
improvements in appraisal turn-around time and quality, which has translated to a competitive
advantage for the company and large mar ket share gains, positioning Real Matters as the
third-largest independent provider of appraisals in the U.S. and Canada.
Est. TAM 2012: $2.5 billion residential
properties
Est. TAM 2016: $4 billion residential
properties

Secondary Sector:
Source: IBIS
Property I nspection
Marketplace I nsurance

Product/Service:
Real Matters 100%-owned subsidiary, Solidifi, is an appraisal management company (AMC). An AMC receives an appraisal
request from a mor tgage lender then assigns the request to one of its approved appraisers in the area. The business model with
general fees is shown below. Actual fees likely differ from those shown.

Firm for mortgage Appraisal Management Firm A
Lending Arm Firm Keeps $200 (costs 150-200)
of U.S. Bank
$400 spent
Solidifi (Real Matters)
Firm Keeps $80 (costs 15-20)
Appraiser used receives $200
Appraiser used receives $320

Competitive Advantage:
1) Faster turnaround times: Real Matters uses real- time communication with cloud-based databases compared to its peers use
of a manual, staff-heavy approach, with basic workflow technology. This allows Solidifi to offer 30% to 50% faster turn-around
times.
2) Improved Accuracy: A large concern lenders have post the housing bubble is the accuracy of proper ty valuations. Real
Matters keeps a smaller por tion of appraiser fees (~20%) due to the lower variable overhead that results from the technology
and analytics the company has developed. The extra savings ar e passed down to independent appraisers. Their per for mance is
tracked in Solidifi's database so that future business is assigned to the most competent appraiser in the area. This has crea ted a
distinct and necessary niche for Real Matters, with the lenders as well as with the over 23,000 appraisers with whom Solidifi
works.
Pricing: As most appraisal fees are passed on to the borrower through mor tgage costs and risk management, the market is not
price driven but is still subject to regulatory requirements and investor scrutiny. Real Matters charges the lenders competitive
rates. A typical AMC charge is between $300 and $500 but depends on the complexity of the proper ty.

Customers:
The company has a 7% market share in the U.S. (No. 3 player), and is the provider of choice for 50% of the top 50 lenders in the
U.S. Its largest competitors (ServiceLink and LPS) each have approximately a 15% share and the market remains diversified
and very fluid. In the insurance market, Real Matter s is the No. 2 player in Canada.

Business Plan
Moving Forward:
Real Matters current business model is $135 million in gross revenue from lenders, $25 million in gross profit after paying
appraisers, and EBITDA positive for over 18 months despite an aggressive growth trajectory and R&D investments. The
company has been growing by 50% to 75% per year. According to the company, future growth should come from: 1) continued
increases in share gain from other appraisal management fir ms; 2) a continued return to stronger housing star ts and mortgage
lending that had peaked at over twice the current levels; 3) growth in the U.S. insurance industry; 4) growth in overseas markets;
and, 5) new mar kets for the networ k and technology and new products.
Source: IBIS, Company reports and CIBC World Markets Inc
35
Exhibit 30. Redknee Solutions Real-time Charging/Billing
Redknee Solutions Inc.

TSX RKN Sales: $57 million Employees: 1,600
CEO Lucas Skoczkowski Pro-for ma sales: $240 million Located: Mississauga, ON
CFO David Charron
Company NY 12% + Founded: 1999
Pro Forma Net Cash $76 million
Sector: Source: I BS Business Intelligence Software Sub-Sector: Real-time Charging
Est. TAM 2012: $12.9 billion Est. TAM 2012: $1.5 billion
Est. TAM 2016: $17.1 billion Est. TAM in 4 Years: $2.2 billion
Increasing smar tphone and tablet penetration is pushing network operators to match rising data ARPUs wi th increased service to the end-customer.
This trend has led to a demand for convergent billing and other such services. In the post-2008 era, the competitive landscape has made it tougher for
operators looking to improve profitability and focus on the critical aspects, like brand building and bandwidth procurement. This desire has led to
demand for Redknees solutions, as operators can offload these services and focus on business-critical issues.

On March 30, 2013, Redknee acquired Nokia Siemens Networks' Business Suppor t Systems (BSS) unit for anywhere between 15 million and
35 million euros depending on the success of the business unit. This materially enhances Redknees rating and charging solutions for Tier 1
communications service providers.

The addressable market for real- time charging for the combined Redknee / NSN BSS entity is $1.5 billion. The estimated CAGR for this market is 12%.
Redknee / NSN combined are third in mar ket share behind Ericsson and Huawei. Key growth drivers are the change to LTE networks, networks of
brands, proliferation of Mobile Vir tual Operator (MVOs), and large global ethic communities, which are all contributing to the need for "real- time" billing
capabilities.

Product/Service:

TCB: Redknee provides converged billing, rating, charging, CRM, invoicing, wholesale, and content settlement. NSN BSS is
focused on real-time billing for rating and charging.
This allows pre-paid or post-paid subscribers to track their usage for voice, data and messaging in real- time, as well as their
current and histor ical balances for each and the ability to pay. The user also has the ability to activate, change or cancel
packages immediately or choose a recommended package (calculated by the TCO) that would save the user the most. The
advantage of the entire system is that it is based on real-time data versus monthly billing data, and offers a suitable plan to
the subscriber.
The acquisition of NSNs BSS business has given Redknee NSN s charge@once products, offering pre-paid and converged
billing, to Tier 1 networ k operators. Redknee also acquired NSN's policy management solution (PCRF), which enables
operators to send real- time notifications and promotions based on subscriber behavior and usage. I ts customer base
includes business from carriers from around the world.
Both product sets are sold as software licenses, with ongoing suppor t and maintenance. Redknee also offers a SaaS cloud
model.

Redknee + NSN BSS combined competitive advantages include: A strong customer base of more than 200 customers
across 90 countries, including more than hal f of the Top 100 operators in the world. Redknee provides one of the industry s
most comprehensive por tfolio of highly scalable and flexible revenue and subscriber management solutions for Tier 1
operators, MVNE/Os and service providers. At one of its customers, it is supporting more than 85 million subscribers in one
deployment.

Customers:

Vodafone, T-Mobile, Orange, Telefonica are customer examples. New customer examples include: Vodafone India,
Vodacom, and Smar t. Overall, Redknee has more than 200 customers in 90 countries and serves more than 2 billion
subscribers. Redknee's two largest customers accounted for 19% of revenue. Of revenue, 50% was recurring in 2012
versus 42% in 2011 and this trend is expected to continue. Software and services comprised 59% of revenue in 2012 and is
generated from licensing software products and providing the related hardware.
36

Business Plan
Moving Forward:

In 2013 the integration of NSN BSS will be Redknee' s primary focus. Specific financial details about this acquisition have not
been provided. Revenue of ~$240 million from $150,000 sales per employee. Gross margins of 65% are expected to be
lower when combined with NSN BSS. The operating margin goal is 5%8% by April 2014. Longer ter m the goal is 12%15%
by April 2015. Currently, the combined business is roughly break-even.

The NSN BSS acquisition adds 1,200 BSS employees to Redknee's existing 417 employees. Redknee will have custo mer
contracts not just from NSN s BSS business directly purchased but from other businesses of NSN which were not par t of the
transaction. Redknee has previously lost a number of large deals due to its lack of size and this deal appears to address
those concerns.

I ntegration milestones for 2013 include:
BAR report mid-June, which will detail cer tain financial metrics for NSN BSS
FY Q3/13 repor t mid-August (First quar ter of combined entity)
FY Q4/13 repor t mid-November (Second quar ter of combined entity)
Source: IBS, Company reports and CIBC World Markets Inc
37
Exhibit 31. SkyWave Mobile Communications M2M Satellite Market
SkyWave Mobile Communications Inc.

Private Sales: $50 million to $100 million Employees: 180
CEO Pui-Ling Stanley
Chan Approx Growth Rate LY: 20% Located: Ottawa, ON

Investors: McLean Watson, Investissement Desjardins; GTI Capital. Inmarsat holds 19% equity interest.
Sector: Source:
Information Age
M2M Satellite/Cellular Sub-Sector: Source: NSR North American M2M Satellite
Est. TAM 2012: $44 billion Est. TAM 2012: $380 million
Est. TAM 2017: $290 billion Est. TAM 2017: $700 million
The satellite market for reducing loss of assets, improving efficiency and lowering overall transportation costs is becoming an increasing focus for
mature and maturing transpor tation companies / organizations looking to improve their bottom line. With machine- to- machine (M2M) technology
becoming increasingly widespread and cost effective, it is thought that this will be the next major technology wave to aid companies in achieving /
improving profitability.

At CES 2013, Audi, showcasing a connected car able to par k itself via a smar tphone app, received a large amount of attention. Ford, GM and
auto-supplier Delphi all offered innovative wireless solutions for the car. While flashy, M2M with consumer cars has not even hit the global auto market
in a material way. Currently, the M2M mar ket is primarily seeing uptake with vehicle fleets, and this market is continuing to grow not only in penetration
but in services offered. The overall M2M automotive market is almost entirely upside versus the current state.
Fleet management M2M solutions are generally known as telematics and differ on price, software, services, connectivity and specialization. The mar ket
is highly fragmented, with the largest fleet management solution company (Qualcomm) holding only 5% of the global market. Competitors include
Iridium, Orbcomm, Qualcomm, NextBus and Fleetmatic, which had its IPO in October 2012 and the current valuation of which stands at a P/ S of 5x and
a P/E of 26x next year s earnings.

Product/Service:

SkyWave is aligned with Inmarsat to provide Satellite/Satellite-Cellular Communication for M2M applications for
remote monitoring of fixed and mobile assets. SkyWave provides the technology and charges subscriber s a monthly
services fee. Inmarsat provides the satellite communication access. When combined, this includes remote vehicle
tracking of mobile assets such as trucks, freight car s, marine vessels, aircraft and heavy equipment. In the oil & gas
market, Sky Wave also offers monitoring/ control of remote fixed assets such as pipelines, pumps and wellheads, in
addition to workforce automation, which automates the workflow of electronic for ms, etc. In 2009, Inmarsat acquired a
19% stake in Sky Wave and for med an agreement for direct distr ibution for its satellite capacity. In October of last year,
Sky Wave announced early success for its new low data rate service, I satData Pro, shipping 12,000 ter minals. The
products primary competitive advantages are a significant payload capaci ty compared to other satellite-based M2M
services in the market and its availability anywhere around the globe combined with attractive pricing. The technology
addresses next-generation satellite and cellular protocols.

Customers:

Transportation, maritime, oil & gas and utility fir ms that require two-way data communication with their fixed and mobile
assets. Sky Wave has 240,000 subscriptions and the monthly ARPU is ~$10. These subscribers come from over
400 channel par tners across 75 countries and over its history Sky Wave has shipped over 600,000 ter minals. Of
customers, 90% are buying the solution directly from Sky Wave.

Forward:

Sky Wave's business is 50% hardware and 50% services. I t has revenue of ~$50 million, gross margins of 45%, is
profitable and is growing at just under 20%. According to Sky Wave, growth (current and future) comes from customers
whose vehicles cross international borders where roaming charges are becoming increasingly prohibitive. Other growth
markets are fleets operating in remote geographic areas with weak cellular zones and those who require redundant
coverage at all times. There is also increasing awareness of the company s ability to access both satellite and network
coverage through I satM2M and IsatData Pro. In 2012, Sky Wave created a M2M business unit. I t would be generally
reasonable to expect that the company will be able to scale up this segment as well as pursue targeted M&A with its more
than $25 million in cash.
Source: Information Age, NSR, Company reports and CIBC World Markets Inc.
38
Exhibit 32. Solace Systems Application Infrastructure And Middleware
Solace Systems Inc.

Private 2012 Sales: $20MM to $40MM Employees: About 150
CEO Craig Betts Five-year rev. CAGR 2011: 1,512% Located: Ottawa, ON

Investors: Teachers Private Capital; Edgestone Capital Par tners; Tandem Expansion Fund; Genuity Capital Partners; Wesley Clover
Sector: Source:
Researchand-
markets
Global I T Services Sub-Sector: Global Application Infrastructure And Middleware
Est. TAM 2011: $900 billion Est. TAM 2012: $19.3 billion
Est. TAM 2017: $1,147 billion
Communication between clients and servers is the key purpose of middleware IT solutions and often brings together multi -brands and various
hardware/software solutions. Typically, solutions for running an in-house IT system can be material, from purchasing multiple servers, software and
O/S licensing, network, storage, overall power, manpower and ongoing maintenance costs.

Among the major players in messaging middleware are IBM, TIBCO, Solace, Infor matica, Oracle, Microsoft and Software AG.

Product/Service:

The Solace 3200 messaging appliances increase speed, reliability and capacity while utilizing less space, incurring lower
maintenance costs and reducing necessary manpower. Solace estimates the total cost of ownership can be reduced by 50% to
80% versus alternative solutions.

Customers:

Customers include fir ms of various sizes and industries around the world. Some examples include Barclays Capital, The
Domestic Nuclear Detection Office (DNDO), eBay, Harris Corporation, London Stock Exchange, RBC Capital Markets, and
myspace.

Business Plan
Moving Forward:

Solace expects to continue to penetrate the investment banking, telecommunication, government and Internet markets. While
fir st customer deals tend to be measured in the hundreds of thousands, many customers become repeat buyers with full
deployment sales potential of $10 million to $100 million, suggesting the company is still in very early stages.
The company expects growth of over 40% in sales in 2013, with gross margins above 70% and a model that involves a
direct-to-the-customer sales force.
Source: Research and Markets, GAVE Advisors, Company reports and CIBC World Markets Inc
39
Exhibit 33. Spectra7 Microsystems Analog IC Market
Spectra7 Microsystems Inc.

TSX SEV Sales: <$10 mil lion Employees: 51
CEO Tony Stelliga Approx Growth Rate LY: n/a Located: Markham, ON

Company NY: 100%+ Founded: 2012
Pro Forma Net Cash: $2 million
Sector: Source:
Resourceandmarket s Analog I C Market
Increasing demand for higher resolution displays, image quality and bandwidth is dictating an
unprecedented change in consumer electronics and infrastructure products, creating an
insatiable appetite for high-perfor mance analog semiconductors. At the same time,
television, tablet and handset designs are requiring smaller and thinner designs with the
expectation of steady or even lower costs. Next-generation 4k HDTVs currently only deliver
4:2:0 color at 24 frames per second ( fps) and can only reach 4:4:4 color on 1080p HDTVs
(60 fps). Spectra7s solutions allow true 4:4:4 deep color on 4k HDTVs at 1/8th the pr ice of
optical solutions on an ultra-thin cable; make TVs up to 40% thinner with Silicon Tuners vs.
traditional Electromechanical tuner s; and, make Microcell Base Stations a reality at half the
size by replacing electromechanical duplexers with silicon.
Much of the size reduction is being done by replacing existing electromechanical devices
with silicon. Silicon analog semiconductors condition and regulate functions such as
temperature, electri cal current and high-speed signals and display color and antenna
waveforms, versus digital semiconductors that process binary information or mixed signal
that handle both functions. The benefits of analog semiconductors are that they typically
have longer product life cycles, requiring a lower capital investment, and are more
specialized and varied than digital semiconductors.


Sub-Sector: Spectra7 Semi Opportunity

Product/Service:

Spectra7 specializes in high-speed and high-per formance analog integrated circuits. I ts current offering includes very
early-stage use in a number of applications, including:
Silicon HDTV tuners, offering smaller sizes at lower power and up to 1/8th the cost ($0.50).
A leader in active HDMI cabling. I ts chips offer a unique cable signal process that is generally 3x thinner, 50% cheaper and
150% faster than existing solutions. I t would also allow for longer cables (should be available by mid- summer). The mar ket for
this is approximately 1.2 billion HDMI cables.
Isolation enhancer for LTE and mobile Internet that is 10x smaller and 5x cheaper than previous solutions of an air cavity
duplexer and ceramic duplexer.

Customers:

Customers and potential customers would include television and HDMI out devices, HDMI cable manufacturers and base
station manufacturers.

Business Plan
Moving Forward:

Spectra7 announced a design win with Konka, a TV manufacturer of over 10 million TV sets. Supplying Konka (Chinas
largest TV producer) with its low-cost, silicon, analog TV tuner on a single chip is a positive first step in gaining acceptance by
larger manufacturers.
A strategic alliance with leading consumer electronics player Monster will also be important.
Spectra7 is expected to continue to add TV, HDMI and base station customers through 2013 and 2014. Spectra7s goal for
2014 is to generate revenue of $14 million. Gross margin can generally be expected to be over 50% with base station sales a
positive driver at about a 70% gross margin. Operating costs are $6 million a year and the company would be break-even at
the 2014 target.
Source: ADS Reports, Company reports and CIBC World Markets I nc
40
Exhibit 34. tucows Domain Name Registrations
tucows Inc.

TSX TC Est. 2012 Sales: ~$110 million Employees: ~200
CEO Elliot Noss Approx Growth Rate LY: 20% Located: Toronto

Sector: Source:
Yankee Group
Domain Services Domain name registration is an initial step in setting up an I nternet site. There are ~200 million
domain names registered around the world with over a million names expiring each month.
Expenses for webhosts and I SPs registering individual names take up time from core
competencies and service companies are increasingly realizing the value of third-party domain
registration and services surrounding it. tucows OpenSRS business manages over 14 million
domain names and offers other value-added services.
tucows network infrastructure, billing and provisioning have led to email and domain services
(hover), domain name sales (YummyNames), an online video network (butterscotch),
subscriber management, billing and provisioning software for ISPs (Platypus), and a Mobile
Virtual Network Operator (MVNO) called Ting. Ting s metered mobile services were launched
in May 2012 and are growing at a rate of 6% week over week. At September 2012, Ting had
5,000 subscribers.

Sub-Sector:
Source: Visiongain Mobile Virtual Operator

Product/Service:

Of sales, ~60% come from OpenSRS, primarily volume generic top-level domain registrations, currently consisting of over
13,000 resellers in over 130 countries. tucows is the worlds largest wholesale domain name register with over 1 million domain
transactions a month. In May 2012, tucows introduced a U. S.-focused mobile virtual network operator business (Ting), which
takes advantage of tucows' DNS scale on billing and transaction-based provisioning to give it a real competitive advantage. Ting
purchases network capacity from Sprint and offers mobile data and voice services to consumer s at very attractive prices. Tings
ARPU for the entire year is $125 or ~$10 per month. Ting is growing subscribers by word of mouth at a rate of 6% week on
week.

Customers:

With 13,000+ resellers and over 10 million domains, no customer has been 10% of sales for over three years. An increasing
number of web hosts and ISPs are outsourcing DNS registration due to costs. Ting customers are retail mobile and smartphone
customers seeking plan flexibility and more attractive pricing.

Business Plan
Moving Forward:

Return on capital has been a focus for tucows, running seven modified Dutch tender offers and NCIBs since 2007, repurchasing
a total of 37.3 million shares or ~49% of shares outstanding. While the DNS service business should continue to grow ~10%, the
MVO business Ting has shown accelerating growth on a low base (~5, 000 subs) and the company expects continued growth to
be able to leverage off and create significant value with tucows infrastructure in place.

Source: Yankee Group, Visiongain, Company reports and CIBC World Markets Inc.
41
Exhibit 35. Vision Critical Communications Online Survey Software
Vision Critical Communications Inc.

Private Estimated Sales in 2012: $78 million Employees: 600
CEO Scott Miller Approx Growth Rate: 8% Located: Vancouver, BC
Founded: 2000
Investors: Wellington Financial; OMERS Ventures
Sector: Source:
Marketingprofs Market Research I ndustry
Over the last five years, general marketing and R&D budget cuts have taken a toll on the
Market Research (MR) industry, leading to a decline of 0.8% annually up until 2012. However ,
the smaller budgets have seen a shift from traditional telephone and in-person interviews to the
emergence of online MR at a lower cost.

The online survey software industry is expected to witness fairly rapid growth over the nex t five
years and grow at a CAGR of 10%, reaching $3.1 billion by 2016 as per IBIS. The shift to
Internet-based platfor ms of MR is also reducing lead times in product development.

Vision Critical (VC) has built insight communities and community panels that can be accessed
through its online platfor ms. The company has grown revenues at an impressive 34% per year
from 2007, reaching sales of $78 million in 2012. Business verticals and product lines are
regularly expanding. Recently, VC hired four executives for its Media and Enter tainment team
and expects revenue from the division to nearly double in North America within the nex t year.
VC recently acquired DiscoverText, a cloud-based tex t analytics technology fir m. I ts technology
allows VC to automate scanning of info posted online in survey responses and discover trends,
sentiments and emerging issues on a near real-time basis. I n April , the Branham300
recognized VC as a top five SaaS company in Canada.
Est. TAM : $17.5 billion

Sub-Sector:
Source: Reuters Online Survey Software

Product/Service
and Competitive
Advantage:

VC offer s software tools for understanding behavior and attitude towards a customer s product or service. This includes several
online platfor ms ( that include VC Insight Communities, VC Surveys, VC Discussions) , which help firms build online surveys,
discussion threads, and forums to access its panels. The most successful platform, VC Insight Communities, allows VCs
clients to create multiple customer communities, build and deploy online surveys and create discussion forums.

Customers:

Customers include Yahoo, NASCAR, John Deere, Molson Coors, Virgin Mobile USA and other MNCs. VC's products are
tailored for a broad range of industries, including telecom, financial services, retail and healthcare. Currently, more than 650
brands use VCs Insight Communities platfor m.

Business Plan
Moving Forward:

VC plans to expand its product lines and improve its support infrastructure that operates its online platfor ms. I t also plans to
expand geographically to reach more countries, specifically Ger many and China. I ts member community today is several
million strong and spans 30 countries.
Source: Reuters, Marketingprofs I BIS, Company reports and CIBC World Markets Inc
42
Exhibit 36. ViXS Systems Video Processing
ViXS Systems Inc.

Private Sales: ~ $40 mi llion Employees: 150
CEO Sally Daub Approx Growth Rate LY: n/a Located: Toronto, ON

Investors: Celtic House Venture Partners, New Enterprise Associates
Sector: Source:
iSuppli
Global Video Processing Sub-Sector: 1st World Video Processing
Est. TAM 2012: $4 billion Est. TAM 2012: $2 billion
Est. TAM 2014: $4.5 billion Est. TAM 2014: $2.2 billion
The market for video processors with a system on a chip (SoC) design is continuously evolving, with an increasing number of distr ibutions and
networking medians coming to the market. Low power management offering decoding, encoding, transcoding and transcription for an evolving variety
of compression streams carrying high resolution for mats in a price-competitive environment requires a focused R&D effor t in a semiconductor market
that is increasingly consolidating. Broadcom revenue totals more than all of its core competitors combined, including ST Micro (consumer only),
Entropic, Sigma Designs, Mstar (STB), Ikanos, MaxLinear and ViXS. ViXS, as a focused SoC company, targets a niche at the high end of this rapidly
growing market.

More bandwidth in the home will be needed to suppor t 4K by 2K HD TVs (Ultra HD) that will co-exist, integrate and connect with LTE, 5G Wi- Fi and
services such as Netflix. To deliver this service, Multimedia over Coaxial Alliance (MoCA) is a trade group promoting a standard for home
enter tainment networking using coaxial cables to connect consumer electronics and home networking devices for audio and video. MoCA is used by
cable, satellite and IPTV. The current specification can support multiple streams of HD video up to 175 Mbps net throughputs. Benefits are use of
coaxial, no wireless spectrum use, and links to wireless access points. ViXS and others target supplying the critical silicon for the products in the home
for high-end gateways.

The semiconductor content for video processing used in high-end home entertainment gateways is a robust market at ~$2 billion. Competitor s
providing silicon are Broadcom, ST, Entropic and ViXS. Integrating MoCA by service providers and consumer OEMs into products covers DVRs, Over
The Top (OTT) content, gaming consoles and set- top boxes as gateways and microgateways are the fastest-growing area of home networking devices
and Ultra HDTVs. Sustained material growth in North America over the coming years is expected as cable companies roll out whole-home DVRs and
gateway services. Multi-screen video coming from existing Co-ax infrastructure will also be a key driver.

Product/Service:

ViXS designs and develops SoC semiconductors, software and hardware designs. The company's XCode media processor
series enables the latest generation set- top boxes, PVRs, PCs, network-attached storage devices, residential gateways and
DVRs to view compressed video content securely. ViXS Xtensiv software suite suppor ts numerous XCode features and keeps
up-to-date support of DLNA specifications, Android versions, Flash as well as other features. The XConnex chip launched in
2011 can be paired with other SoC solutions that do not have integrated MoCA. This allows for 175 Mbps throughputs through
multiple HD video streams for TV, IPTV and satellite. ViXS technology and silicon leads in per for mance and reduces the bill of
material savings for end customers.

Customers:

Customers include some of the world s largest home enter tainment companies with a set- top box emphasis, and PC
manufacturers, including Cisco, Dell, Hitachi, LG, Panasonic and Sony. Service providers are also lead customers, playing critical
roles in technology development and include Comcast and DirecTV.

Business Plan
Moving Forward:

ViXS has a three-year goal for revenue of $200 million. Currently, revenue is ~$40 million, generally showing quar ter-over-quarter
growth. ASPs are $10 to $100 and gross margins of 50% plus. A 5% global market share and sales of $200 million are general
company targets. With the severe 2011 flooding in Thailand, ViXS saw material disruptions in business due to supply shortages.
Post the recovery in the fall of 2012, ViXS launched its MoCA 2.0 inspired XConnex 1000 transceiver and XConnex 1030
MAC/PHY integrated SoC, and won business at LG.
Source: iSuppli,, Company reports and CIBC World Markets Inc
43
Exhibit 37. Wattpad Social Media
Wattpad

Private Sales: <$10 mil lion Employees: 45
CEO Allen Lau Approx Growth Rate LY: n/a Located: Toronto, ON

Company NY n/a Founded: 2006
Investors: W Media, Golden Venture, Omers Ventures and Union Square
Sector: Source:
eMarketer
Global Online Ad Spending Social media tops the list of industries with the most potential for growth over the nex t five
years. As can be seen from Facebook and LinkedIn valuations, mature social media sites
are still being valued at 5x+ forward Price/ Sales. While thousands of social media sites
exist, scaling to reach the point at which revenues pay for in-house infrastructure or CDNs,
salaries and space nor mally requires venture capitalists to fund development until critical
mass is reached.
Perhaps the most impor tant statistics for social media start-ups are the number of monthly
active unique users and the number of net new subscribers/ users per month. Assigning a
Cost Per 1,000 I mpressions (CPM) rate that advertisers would be willing to reasonably
pay, investor s can then gain a sense as to when the company could hit profitability and be
self-sustaining.
Sub-Sector:
Source: Bowker Social Media Ad Spending
Est. TAM: $4.6 billion
Est. TAM: $9.2 billion

Product/Service And
Competitive
Advantage:

Wattpad is the worlds largest community connecting writers and readers and allowing comments and interaction between
the two across all genres of fiction. The site is free for all users and allows writers to instantly categor ize, tag, publish and
copyright/ license through creative commons. Online books are divided into 23 categories and offered in 26 languages.

Customers:

Wattpad has 15 million unique monthly users. The most impressive statistic is that users spend over 3 billion minutes on
Wattpad every month. More than 650 writers have published pieces that have been read more than 1 million times. I ts
largest markets include the U.S., the U. K., Canada, Australia, the Philippines and Vietnam. Other interesting stats include
that 80% of users access the site through their mobile devices, 60,000 stories are uploaded or expanded ( Wattpad allows
serial publishing) a day versus 5,000 books a year published by a traditional publishing house , and every minute 10,000
readers on the site are connected to a new story added. Nine out of 10 user s on the site are readers.

Forward:

As of February 2013, Wattpad has seen traffic growth of 70% over the last three months. The immediate goal is to continue
to expand its users in order to obtain a critical mass. Similar to Keek, funding should not be an issue as the company has
already raised $20 million over the past two years on a smaller userbase. The company expects growth to come from all
major markets in which it has suppor ted languages.

Establishing Wattpad s business model will take place over the longer ter m. Possible routes to recognizing large-scale
revenue include:
Using an adwords model for e-books. This can help increase viewership for the customer and would not be a huge hit to
the reputational brand, as Google has demonstrated.
Selling user data and trends.
The traditional banner ad model is not in the immediate plans and Wattpad maintains a minimal amount of banner ads. At
current statistics of 15 million unique page views at an average CPM of ~$0.75 and continued growth of 25% month over
month, it is thought that annualized sales could be $3 million by the star t of 2014. The 25% month-over-month growth would
yield $40 million in sales.

Source: eMarketer, Bowker, Company reports and CI BC World Markets Inc.

44
Exhibit 38. Webtech Wireless Global Fleet Management
Webtech Wireless Inc.

TSX WEW Sales: $29 million Employees: 148
CEO Scott Edmonds Approx Growth Rate LY -13% Located: Vancouver, BC

Pro Forma Net Cash ~$25 mil lion
Market Capitalization: ~ $30 mi llion
Sector: Source:
ABI research Machine To Machine
The satellite market for reducing loss of assets, improving efficiency and lowering overall
transpor tation costs is becoming an increasing focus for mature and maturing transportation
companies / organizations looking to improve their bottom line. With machine- to- machine
(M2M) technology becoming increasingly widespread and cost effective, it is thought that this
will be the next major technology wave to aid companies in achieving / improving profitability.
At CES 2013, Audi, showcasing a connected car able to par k itself via a smar tphone app,
received a large amount of attention. Ford, GM and auto- supplier Delphi all offered
innovative wireless solutions for the car. While flashy, M2M with consumer cars has not even
hit the global auto market in a material way. Currently, the M2M market is primarily seeing
uptake with vehicle fleets, and this market is continuing to grow not only in penetration but in
services offered. The overall M2M automotive market is almost entirely upside versus the
current state. Fleet management M2M solutions are generally known as telematics and differ
on price, software, services, connectivity and specialization. The market is highly
fragmented, with the largest fleet management solution company (Qualcomm) holding only
5% of the global market.
Further mar ket consolidation is likely. Webtech is undertaking a strategic review that could
result in an outright sale of the company. Two activist shareholder s recently joined its Board
of Directors John Gildner and Rob Kittle. Mr. Kittle was on the Board of Jevco when it was
acquired by Intact Financial for $530 million in 2012 and on Pet Valus board as it was
acquired by Roark Capital for $144 million.
Est. TAM 2011: 81.8 million connections
Est. TAM 2015: 217.3 million connections

Sub-Sector: Global Fleet Management /
Trailer Tracking Systems
Est. TAM 2012: 13.3 million subscriptions
Est. TAM 2016: 30.4 million subscriptions

Product/Service:

Webtech connects back-office data and fleet operational data with GPS and wireless technologies. I ts hardware and
software services run on cellular and GPS networks and provide not only location-based services and mapping but vehicle-
and driver-centric intelligence such as maintenance data, driver status, in-vehicle telemetry and messaging.
The technology at the heart of Webtechs solutions is a black box device known as the WT series. I ts two primary markets
are:
I nterFleet (Formerly Grey I sland): Aimed at various municipal and provincial / state governments to monitor fleets and
more complex applications for snowplows, ambulances and waste management. Penetration for this market is thought to be
around 30%.
Quadrant: A private sector solution aimed at improving management r isk and allowing real-time operations of vehicle fleets.
Webtechs advantage is its ability to determine hours of service across multiple platfor ms and to deliver its entire suite of
solutions across diverse fleets from sedans to long-haul trucks, and to adapt to multiple hardware platfor ms, both its own WT
series and hardware from vehicle OEMs and other telematics suppliers.

Customers:

Customers include Sierra Pacific Industries, Commonwealth of Kentucky, FedEx, Canadian Pacific Railway, City of Chicago,
the Port of Metro Vancouver and 1,000 others. Sales are primarily to the U.S. (43%) and Canada (42%) as management has
reduced low gross margin overseas hardware sales operations. Of sales, 71% are recurring revenue. WEW has 72,000
monthly subscribers who pay about $24/ month.

Business Plan
Moving Forward:

In January Webtech sold its Nex tBus business for $20.8 million. In 2013, it will focus on executing growth and profits within
its core telematics business. Growth is expected to continue on its 72,000 subscribers that comprise over 70% of its sales,
with an increased focus on profitably growing its Fleet Intelligence Anywhere strategy post NextBus. The market growth is
~10%. WEW has gross margins of 50%+ and opex of ~$15 million. WEW expects to at least grow with the market, which in
turn the company would then expect to generate EBIT leverage. The fleet management industry continues to move towards
consolidation that could include WEW given its current strategic review and base of activist shareholders.
Source: ABI research, Company reports and CI BC World Markets Inc.
45
E-commerce In Canada
E-commerce as a percentage of total discretionary spending sales in the U.S. hit
a record 10% in Q1/2013 and has grown by double digits for 10 consecutive
quarters. Canada has tended to lag the U.S. by about 100 basis points (bps) but
generally follows the same patterns. Basically, e-commerce sales remain early
stage but continue to show sustained strong momentum. In North America,
while Amazon (AMZNNASDAQ) has taken an early lead as an online retailer,
e-Bay (EBAYOTC) is the largest auction house and Groupon (GRPNNASDAQ) is
regarded as the king of daily deals, the focus on Canada has been particularly
underwhelming.
Thank You Canada Customs
Canada has transformed itself into a prime location from which to run a North
American e-commerce business. U.S. customs does not levy any duty, taxes or
brokerage fees on parcels under US$200. Canada Customs, however, collects
HST (or GST/PST/QST, as applicable) and duty on any package over $20.
Therefore, retailers such as Amazon, Macys and Victorias Secret pass on these
fees to buyers or charge higher prices. In other situations, discount U.S.
retailers such as Zappos, J.C. Penney and L.L. Bean have avoided shipments to
Canada altogether. The result is an under-served Canadian market with small
and mid-market players allowed to scale more easily.
Little Brother Ignored Again
Lack Of Selection: A quick browse of the Amazon.ca website shows a
materially smaller product selection and the non-existence of a number of large
categories such as clothing, automotive and groceries. Well.ca noted that one of
its greatest competitive advantages is keeping its logistics, merchandising and
customer service in-house. Inventory turns were about 75x and the companys
attention to detail on logistics has allowed it to carve out a market in smaller
products, including food, medicine and personal care products, where larger
players would find it difficult to compete profitably.
Lack Of Sufficient Canadian Warehousing: Warehousing in the U.S. has, in
many cases, pushed the prices after shipping, handling and import fees higher
than normal brick-and-mortar pricing. Agreements with various drop shippers
have relinquished, to some extent, control over the timeline and ability to track
products, leading to the risk of problems and a potentially negative review of the
e-commerce brand.
Lack Of Attention: Canadian e-commerce retailers such as Well.ca and Beyond
the Rack offer toll-free numbers; Amazon.com and e-Bay do not have contact
phone numbers. At least partially as a result, sales from regular customers
represent upwards of 70% of total sales and likely help to further penetrate the
Canadian retail market.
Profitability Takes Time
While consistent profitability for Canadas largest home-grown e-commerce
companies remains elusive, it should not be forgotten that Amazon took eight
years to achieve positive operating income and nine years for net income in the
black. Groupon achieved positive operating income in its fifth year and has yet
to see positive net income. A company closer in size to its Canadian peers,
Overstock.com (OSTKNASDAQ), took 12 years to be in the green on both
fronts. Americas e-commerce companies have generally focused on getting their
home market in order prior to concentrating on Canada.
46
Exhibit 39. E-commerce Companies Focus On Top-line Growth
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
1 2 3 4 5 6 7 8 9 10 11 12 13
Years I n Operation
A
n
n
u
a
l

S
a
l
e
s

(
U
S
D

M
i
l
l
i
o
n
s
)
Amazon Groupon Overstock United Online

Exhibit 40. E-commerce Profitability Has Normally Come Much Later
-$800
-$600
-$400
-$200
$0
$200
$400
$600
$800
1 2 3 4 5 6 7 8 9 10 11 12 13
Years In Operation
A
n
n
u
a
l

O
p
e
r
a
t
i
n
g

I
n
c
o
m
e

(
U
S
D

M
i
l
l
i
o
n
s
)
Amazon Groupon Overstock United Online

47
Exhibit 41. Beyond The Rack E-commerce Market
Beyond the Rack Inc.

Private Sales: $100MM$150MM Employees: 410
CEO Yona Shtern Approx Growth Rate LY: 50% Located: Montreal, Canada

Investors:
Panorama Capital; Export Development Canada; Tandem Expansion Fund; Rho Canada; Inovia
Capital; Highland Capital Partners and BDC Venture Capital . Total equity raised ~$40 million.
Sector: Source:
eMarketer E-commerce North America
The e-commer ce market continues to expand at a double-digit pace, with Canadian sales
expected to grow at a faster rate (19%) over the next three years than U.S. (12%) ,
according to eMarketer. Consumers are becoming increasingly comfor table with online
purchasing and the growth rate is expected to remain steady over the next five years. While
the largest online retailers, such as Amazon and Wal-Mar t, offer, in many cases, lower
prices, online offerings such as health and beauty products are incomplete, hindered by low
selling prices versus relatively higher shipping costs. The market continues to evolve and
there remains a lot of room for new entrants.
Est. TAM in 4 Years: $500 billion

Sub-Sector: Source:
Government of
Canada E-commerce Canada
Est. TAM in 4 Years: $32 billion

Product/Service and
Competitive
Advantage:

Beyond the Rack (BTR) offers 15+ flash sales at a time of up to 70% off retail prices for a 48- to 96-hour period, comprising
primarily luxury items. Agreements with suppliers are made with approximately 85% of the products selling on a consignment
basis. Among the products offered are mens, womens and baby clothing, shoes, jewelry, fragrances, watches and home
decor. The company s competi tive advantage is its scale, with 8.5 million subscribers growing monthly at 200,000, and its
ability to manage complex logistics. Beyond The Rack continues to move towards its goal of becoming the largest and most
profitable e-commerce company in Canada. I t is currently third behind Amazon and e-Bay.

Customers:

Customers are generally split between Canada and the U.S. Approximately 85% of customers are women, with the target
demographic 25 to 55 years. The average purchase size is $95 and 75% of buyers are repeat purchasers. Buyers are
purchasing 2.5 items on average. Of sales, 25% come from mobile. Mobile will be a significant growth dr iver.

Business Plan
Moving Forward:

Growth thus far has stemmed from reputation, adwords and word of mouth. BTRs objectives of becoming the No. 1
e-commerce company in profitability in Canada and Nor th America is suppor ted by its two distribution warehouses to serve the
East and West in Montreal and Las Vegas. Acquisitions are possible in a market of consolidation and BTR, as a larger player,
could generally be considered a likely consolidator.
Source: eMarketer, Gov ernment of Canada, Company reports and CIBC World Markets Inc
48
Exhibit 42. TeamBuy.ca E-commerce Market
Buyers Unite Inc./TeamBuy.ca

Private Sales: $50MM$100MM Employees: 135
CEO Ghassan Halazon Approx Growth Rate LY: 100%+ Located: Toronto, ON

Est. Forecasted Growth
By Company NY 200%+ Founded: 2010
Investors: Insight Venture Par tners (NY), Georgian Par tners (Toronto) and Ontario Venture
Capital (Toronto), ru-NET (Russia)
Sector: Source: eMarketer E-commerce North
America
The e-commer ce market continues to expand at a double-digit pace, with Canadian sales
expected to grow at a faster rate (19%) over the next three years than U.S. (12%) ,
according to eMarketer. Consumers are becoming increasingly comfor table with online
purchasing and the growth rate is expected to remain steady over the next five years.
While the largest online retailers, such as Amazon and Wal-Mart, offer everyday low
prices, online deals and promotions offering services and products from local businesses
require more nimble offerings, opening the market to local competitors.

Sub-Sector: Source:
Government of Canada E-commerce Canada

Product/Service:

The recent combination of teambuy.ca and dealfind.com in January 2013 has expanded the fir m s subscriber base to
3.5 million, making it the largest Canadian daily deal company. TeamBuy has recently changed its structure and
re-imagined its original local deal-a-day model to emerge as a broader destination site for hundreds of limited- time
deals on services, electronics, health & beauty products, fashion, home, jewelry, and travel. The combined entity
offers promotions across Canada and in select U.S. markets. The company receives a percentage of each consumer
purchase. TeamBuy also owns Menupalace. com, a popular restaurant and hospitality guide for finding the best
restaurants and ordering online across North America.

Customers:

Demographics of buyers are generally young (ages 23 to 45) and female (~75%). Of customers, 50% are repeat with
75% of those customers making purchases once every few months. 25%30% of visits in 2013 are expected to
come from mobile, which could turn into a very powerful tool. The average purchase tends to be between $40 and
$50.

Forward:

The company expects to increase the number of deals and verticals, and move deeper into existing verticals in the
near future. Growth is primarily focused on Canada. I ts scale continues to grow, which should support expanded
logistics to improve the customer experience. I mproving on the mobile experience and deal per sonalization are other
goals for the company. TeamBuy believes it could reach $200 million in annual sales over the nex t few years given
market trends and the entitys current position.

49
Exhibit 43. Well.ca E-commerce Market
Well.ca Inc.

Private Sales estimate: ~$100 million Employees: 150
CEO and Founder: Ali Asaria Approx Growth Rate LY: 110% Located: Guelph, ON

Investors:
iNovia Capital, Extreme Ventures Partner s, Jordan Banks (MD @Facebook Canada),
Matt Mullenweg (Co-founder of Wordpress) and Jeff Fluhr (Co-founder of StarHub)
Sector: Source: eMarketer E-commerce North America The e-commer ce market continues to expand at a double-digit pace, with Canadian
sales expected to grow at a faster rate (19%) over the next three years than U.S.
(12%), according to eMarketer. Consumers are becoming increasingly comfor table
with online purchasing and the growth rate is expected to remain steady over the next
five years. While the largest online retailer s, such as Amazon and Wal-Mart, offer, in
many cases, lower prices, online offerings such as health and beauty products are
incomplete, hindered by low selling prices versus relatively higher shipping costs. The
market continues to evolve and there remains a lot of room for new entrants.

Sub-Sector: Source:
Government of Canada
E-commerce Canada

Product/Service:

Well. ca is focused solely on online health, beauty and baby products for the Canadian market. I ts advantage over its
larger U.S. peers has been to deliver a first-class customer experience. The local touch, focusing on un-served niche
areas, highlights Canadian products while building a loyal base on the premise of free shipping for baskets over $25 all
to be delivered the nex t day. The company has also scaled up to the point where direct pur chases from supplier s can
be made, allowing for comparable prices for most items.

Customers:

Customers are dispersed geographically, generally the same as the population with a skew towards Ontario
(approximately 60% of customers). Approximately 75% of customers are women. The average basket size is ~$75.

Forward:

Growth thus far has come from reputation, word of mouth and promotional virtual stores in downtown Toronto. Well.ca
has excelled in the customer service space with approximately 70% of customers being repeat. Growth will come from
an expansion of its product line and increased penetration in the Canadian market at a fast rate. Well.cas five
operating pillars are logistics, technology, retailing, merchandising and customer service (all in-house) and the focus
has been critical to successful execution thus far. Well. ca has an extensive mobile presence with Apple and Android
apps along with a social media presence on Facebook and Twitter.


50
IMPORTANT DISCLOSURES:
Analyst Certification: Each CIBC World Markets research analyst named on the front page of this research report, or
at the beginning of any subsection hereof, hereby certifies that (i) the recommendations and opinions expressed herein
accurately reflect such research analyst's personal views about the company and securities that are the subject of this
report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii)
no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific
recommendations or views expressed by such research analyst in this report.
Potential Conflicts of Interest: Equity research analysts employed by CIBC World Markets are compensated from
revenues generated by various CIBC World Markets businesses, including the CIBC World Markets Investment Banking
Department. Research analysts do not receive compensation based upon revenues from specific investment banking
transactions. CIBC World Markets generally prohibits any research analyst and any member of his or her household from
executing trades in the securities of a company that such research analyst covers. Additionally, CIBC World Markets
generally prohibits any research analyst from serving as an officer, director or advisory board member of a company that
such analyst covers.
In addition to 1% ownership positions in covered companies that are required to be specifically disclosed in this report,
CIBC World Markets may have a long position of less than 1% or a short position or deal as principal in the securities
discussed herein, related securities or in options, futures or other derivative instruments based thereon.
Recipients of this report are advised that any or all of the foregoing arrangements, as well as more specific disclosures
set forth below, may at times give rise to potential conflicts of interest.
51
Important Disclosure Footnotes for Companies Mentioned in this Report that Are Covered
by CIBC World Markets Inc.:

Stock Prices as of 06/06/2013:
AGF Management Limited (2g, 7, 13) (AGF.B-TSX, C$11.31, Sector Performer)
Altus Group Limited (2g) (AIF-TSX, C$8.29, Sector Performer)
Bank of Montreal (2g, 3a, 3c, 7) (BMO-TSX, C$59.89, Sector Underperformer)
BCE Inc. (2a, 2c, 2e, 2g, 7, 9, CD7) (BCE-TSX, C$45.16, Restricted)
Bell Aliant Inc. (2a, 2c, 2e, 2g, 7) (BA-TSX, C$28.12, Sector Performer)
Bombardier Inc. (2a, 2d, 2e, 2g, 7, 12) (BBD.B-TSX, C$4.91, Sector Outperformer)
Canadian Pacific Railway Ltd. (2g, 7, 9) (CP-TSX, C$126.80, Sector Performer)
Celestica Inc. (2g, 6a, 12) (CLS-NYSE, US$9.50, Sector Outperformer)
CGI Group Inc. (2a, 2e, 2g, 9, 12) (GIB.A-TSX, C$31.01, Sector Outperformer)
Constellation Software Inc. (2g) (CSU-TSX, C$147.14, Sector Performer)
Descartes Systems Group Inc. (2g) (DSGX-OTC, US$10.78, Sector Performer)
Extendicare Inc. (2a, 2c, 2e, 2g) (EXE-TSX, C$6.65, Sector Performer)
Intact Financial Corp. (2a, 2c, 2e, 2g, 7) (IFC-TSX, C$62.00, Sector Outperformer)
MacDonald, Dettwiler and Associates Ltd. (2a, 2c, 2e, 2g) (MDA-TSX, C$67.82, Sector Outperformer)
Onex Corporation (2g, 12) (OCX-TSX, C$46.95, Sector Outperformer)
Open Text Corporation (2g, 7, 9) (OTEX-NASDAQ, US$71.36, Sector Outperformer)
Research In Motion Limited (2g, 7) (BBRY-NASDAQ, US$13.76, Sector Outperformer - Speculative)
Royal Bank of Canada (2a, 2c, 2g, 3a, 3c, 7) (RY-TSX, C$59.76, Sector Outperformer)
Smart Technologies Inc. (2g) (SMT-NASDAQ, US$1.31, Sector Outperformer)
TELUS Corporation (2a, 2c, 2e, 2g, 7, 9, 13) (T-TSX, C$34.80, Restricted)
Thomson Reuters Corporation (2g) (TRI-NYSE, US$33.30, Sector Performer)
Wi-LAN Inc. (2g) (WIN-TSX, C$4.14, Sector Outperformer)

Companies Mentioned in this Report that Are Not Covered by CIBC World Markets Inc.:

Aastra Technologies Limited (AAH-TSX, C$20.42, Not Rated)
Absolute Software (ABT-TSX, C$7.08, Not Rated)
Acacia Research (ACTG-OTC, US$24.74, Not Rated)
Advanced Micro Devices (AMD-NYSE, US$3.86, Not Rated)
Agilent Technologies (A-NYSE, US$44.57, Not Rated)
Alcatel-Lucent (ALU-NYSE, US$1.76, Not Rated)
Amazon.com (AMZN-NASDAQ, US$265.88, Not Rated)
Amdocs Ltd. (DOX-NYSE, US$35.41, Not Rated)
Apple Inc. (AAPL-NASDAQ, US$438.08, Not Rated)
Autodesk Software (ADSK-OTC, US$35.73, Not Rated)
Avigilon Corp. (AVO-TSX, C$17.47, Not Rated)
Azure Dynamics Corp. (AZDDQ-PN, US$0.01, Not Rated)
Barclays PLC (BARC-L, p3.06, Not Rated)
Belden Inc. (BDC-NYSE, US$51.37, Not Rated)
Benchmark Electronics (BHE-NYSE, US$19.63, Not Rated)
Broadcom Corp. (BRCM-NASDAQ, US$34.66, Not Rated)
CIENA Corporation (CIEN-NASDAQ, US$18.71, Not Rated)
Cinram International Income Fund (CRW.UN-PN, US$0.01, Not Rated)
Cisco Systems (CSCO-NASDAQ, US$24.41, Not Rated)
52
(Continued)

Comcast (CMCSA-NASDAQ, US$39.79, Not Rated)
Deere & Company (DE-NYSE, US$85.70, Not Rated)
Dell Computer Corp. (DELL-NASDAQ, US$13.45, Not Rated)
Delphi Automotive (DLPH-NYSE, US$48.80, Not Rated)
Deutsche Telekom (DTEGN-DE, 8.68, Not Rated)
DirecTV Group Inc. (The) (DTV-NASDAQ, US$61.10, Not Rated)
eBay Inc. (EBAY-OTC, US$50.92, Not Rated)
Electronic Arts Inc. (EA-NASDAQ, US$23.00, Not Rated)
Entropic Communications Inc. (ENTR-NASDAQ, US$4.31, Not Rated)
Enwave Corporation (ENW-V, C$1.50, Not Rated)
Facebook Inc. (FB-NASDAQ, US$22.81, Not Rated)
Fedex Corp (FDX-NYSE, US$96.24, Not Rated)
Fleetmatics Group plc (FLTX-NYSE, US$30.24, Not Rated)
Ford Motor Company (F-NYSE, US$15.22, Not Rated)
France Telecom (FTE-NYSE, US$9.91, Not Rated)
General Motors Company (GM-NYSE, US$34.05, Not Rated)
Google Inc. (GOOG-NASDAQ, US$853.77, Not Rated)
Groupon Inc. (GRPN-NASDAQ, US$6.65, Not Rated)
Halogen Software (HGN-TSX, C$13.25, Not Rated)
Hangzhou Hikvision Digital Technology Co Ltd (002415-T, 37.55, Not Rated)
HarbourVest Global Private Equity (HVPE-L, p0.10, Not Rated)
Harris Corporation (HRS-NYSE, US$49.65, Not Rated)
Hertz Global Holdings (HTZ-NYSE, US$24.17, Not Rated)
Hitachi Ltd. (6501-T, 648.00, Not Rated)
Honeywell International Inc. (HON-NYSE, US$76.93, Not Rated)
Hormel Foods Corp. (HRL-NYSE, US$38.72, Not Rated)
Huawei Technology Co. Ltd. (002502-SZ, [CNY]9.16, Not Rated)
Hynix Semiconductor Inc. (000660-KS, [KRW]31150.00, Not Rated)
Ikanos Communications (IKAN-OTC, US$1.28, Not Rated)
Informatica Corporation (INFA-OTC, US$35.86, Not Rated)
Inmarsat Holdings (ISAT-L, p6.18, Not Rated)
InterDigital Communications Corp. (IDCC-NASDAQ, US$45.51, Not Rated)
International Business Machines (IBM-NYSE, US$202.05, Not Rated)
Iridium Communications Inc. (IRDM-NASDAQ, US$7.28, Not Rated)
Iron Mountain Incorporated (IRM-NYSE, US$34.11, Not Rated)
Jabil Circuit, Inc. (JBL-NYSE, US$19.26, Not Rated)
JC Penney (JCP-NYSE, US$17.99, Not Rated)
Juniper Networks (JNPR-NYSE, US$18.37, Not Rated)
Kellogg Co (K-NYSE, US$61.79, Not Rated)
Kindred Healthcare (KND-NYSE, US$13.43, Not Rated)
Lender Processing Services (LPS-NYSE, US$33.04, Not Rated)
LG Corp. (003550-KS, [KRW]66900.00, Not Rated)
Linkedin Corp. (LNKD-NASDAQ, US$167.23, Not Rated)
LM Ericsson AB (ERIC-NASDAQ, US$11.80, Not Rated)
London Stock Exchange (LSE-L, p13.92, Not Rated)
Manhattan Associates (MANH-OTC, US$75.93, Not Rated)
MaxLinear Inc. (MXL-NYSE, US$6.41, Not Rated)
53
(Continued)

McDonald's Corporation (MCD-NYSE, US$95.86, Not Rated)
Merck & Co. (MRK-NYSE, US$48.22, Not Rated)
Micron Technology (MU-NASDAQ, US$12.31, Not Rated)
Microsemi Corp. (MSCC-OTC, US$21.49, Not Rated)
Microsoft Corporation (MSFT-NASDAQ, US$34.57, Not Rated)
Mobotix AG (MBQGN-F, 15.56, Not Rated)
Molson Coors Brewing Company (TAP-NYSE, US$49.28, Not Rated)
MStar Semiconductor, Inc. (3697-TW, [TWD]252.50, Not Rated)
Nanotech Security Corp. (NTS-V, C$0.80, Not Rated)
Nestle SA (NSRGY-OTC, US$66.75, Not Rated)
Netflix Inc (NFLX-NASDAQ, US$214.44, Not Rated)
NetScout Systems (NTCT-OTC, US$23.76, Not Rated)
Nice Systems, Ltd. (NICE-OTC, US$37.26, Not Rated)
Nokia Corporation (NOK-NYSE, US$3.49, Not Rated)
Nortel Networks Corporation (NRTLQ-PN, US$0.01, Not Rated)
Ocean Spray Cranberries Inc. (OCESO-PN, US$11.00, Not Rated)
Oracle Corporation (ORCL-NASDAQ, US$33.18, Not Rated)
ORBCOMM, Inc. (ORBC-NASDAQ, US$4.12, Not Rated)
Overstock.com (OSTK-NASDAQ, US$26.82, Not Rated)
Panasonic Corp. (6752-T, 748.00, Not Rated)
PepsiCo Inc. (PEP-NYSE, US$81.12, Not Rated)
Pinetree Capital Ltd. (PNP-TSX, C$0.47, Not Rated)
Qualcomm (QCOM-NASDAQ, US$62.74, Not Rated)
Redknee Solutions Inc. (RKN-TSX, C$2.87, Not Rated)
Samsung Corp. (000830-KS, [KRW]60300.00, Not Rated)
SAP AG (SAP-NYSE, US$75.32, Not Rated)
Seagate Technology, Inc. (STX-NASDAQ, US$43.35, Not Rated)
Semtech Corp. (SMTC-OTC, US$35.60, Not Rated)
Shenzhen Konka Group (000016-SZ, [CNY]3.33, Not Rated)
Siemens (SI-NYSE, US$105.24, Not Rated)
Sigma Designs, Inc. (SIGM-NASDAQ, US$4.83, Not Rated)
Software AG (SOWG-F, 26.00, Not Rated)
Sony Corp. (6758-T, 1869.00, Not Rated)
Spectra7 Microsystems Inc. (SEV-V, C$0.65, Not Rated)
Sprint Nextel (S-NYSE, US$7.27, Not Rated)
STMicroelectronics N.V. (STM-NYSE, US$9.61, Not Rated)
Symantec Corporation (SYMC-OTC, US$21.64, Not Rated)
Teledyne Technologies (TDY-NYSE, US$74.40, Not Rated)
Telefonica (TEF-NYSE, US$13.59, Not Rated)
Tessera Technologies, Inc. (TSRA-NASDAQ, US$20.23, Not Rated)
Texas Instruments (TXN-NASDAQ, US$35.36, Not Rated)
TIBCO Software Inc. (TIBX-OTC, US$20.66, Not Rated)
Tucows Inc. (TC-TSX, C$1.82, Not Rated)
Ubisoft Entertainment (UBIP-PA, 10.25, Not Rated)
United Online, Inc. (UNTD-OTC, US$6.74, Not Rated)
Verint Systems (VRNT-NASDAQ, US$34.91, Not Rated)
Vodacom Group Ltd (VODJ-SA, R11184.00, Not Rated)
54
(Continued)

Vodafone Group plc (VOD-L, p1.90, Not Rated)
Volvo AB (VOLVB-ST, [SEK]97.35, Not Rated)
Wal-Mart (WMT-NYSE, US$75.26, Not Rated)
WebTech Wireless (WEW-TSX, C$0.37, Not Rated)
Yahoo! Inc. (YHOO-OTC, US$25.90, Not Rated)
Zynga Inc. (ZNGA-NASDAQ, US$2.80, Not Rated)

Important disclosure footnotes that correspond to the footnotes in this table may be found in the "Key to
Important Disclosure Footnotes" section of this report.

Key to Important Disclosure Footnotes:
1 CIBC World Markets Corp. makes a market in the securities of this company.
2a This company is a client for which a CIBC World Markets company has performed investment banking services
in the past 12 months.
2b CIBC World Markets Corp. has managed or co-managed a public offering of securities for this company in the
past 12 months.
2c CIBC World Markets Inc. has managed or co-managed a public offering of securities for this company in the
past 12 months.
2d CIBC World Markets Corp. has received compensation for investment banking services from this company in
the past 12 months.
2e CIBC World Markets Inc. has received compensation for investment banking services from this company in the
past 12 months.
2f CIBC World Markets Corp. expects to receive or intends to seek compensation for investment banking services
from this company in the next 3 months.
2g CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services
from this company in the next 3 months.
3a This company is a client for which a CIBC World Markets company has performed non-investment banking,
securities-related services in the past 12 months.
3b CIBC World Markets Corp. has received compensation for non-investment banking, securities-related services
from this company in the past 12 months.
3c CIBC World Markets Inc. has received compensation for non-investment banking, securities-related services
from this company in the past 12 months.
4a This company is a client for which a CIBC World Markets company has performed non-investment banking,
non-securities-related services in the past 12 months.
4b CIBC World Markets Corp. has received compensation for non-investment banking, non-securities-related
services from this company in the past 12 months.
4c CIBC World Markets Inc. has received compensation for non-investment banking, non-securities-related
services from this company in the past 12 months.
5a The CIBC World Markets Corp. analyst(s) who covers this company also has a long position in its common
equity securities.
5b A member of the household of a CIBC World Markets Corp. research analyst who covers this company has a
long position in the common equity securities of this company.
6a The CIBC World Markets Inc. fundamental analyst(s) who covers this company also has a long position in its
common equity securities.
6b A member of the household of a CIBC World Markets Inc. fundamental research analyst who covers this
company has a long position in the common equity securities of this company.
7 CIBC World Markets Corp., CIBC World Markets Inc., and their affiliates, in the aggregate, beneficially own 1%
or more of a class of equity securities issued by this company.
55
Key to Important Disclosure Footnotes: (Continued)
8 An executive of CIBC World Markets Inc. or any analyst involved in the preparation of this research report has
provided services to this company for remuneration in the past 12 months.
9 A senior executive member or director of Canadian Imperial Bank of Commerce ("CIBC"), the parent company
to CIBC World Markets Inc. and CIBC World Markets Corp., or a member of his/her household is an officer,
director or advisory board member of this company or one of its subsidiaries.
10 Canadian Imperial Bank of Commerce ("CIBC"), the parent company to CIBC World Markets Inc. and CIBC
World Markets Corp., has a significant credit relationship with this company.
11 The equity securities of this company are restricted voting shares.
12 The equity securities of this company are subordinate voting shares.
13 The equity securities of this company are non-voting shares.
14 The equity securities of this company are limited voting shares.
CD7 Jim Prentice, Senior Executive Vice-President and Vice Chairman, CIBC, is on the Board of Directors of BCE
Inc.
56
CIBC World Markets Inc. Price Chart
For price and performance information charts required under NYSE and NASD rules, please visit CIBC on the web at
http://apps.cibcwm.com/sec2711 or write to CIBC World Markets Inc., Brookfield Place, 161 Bay Street, 4th Floor,
Toronto, Ontario M5J 2S8, Attn: Research Disclosure Chart Request.

CIBC World Markets Inc. Stock Rating System
Abbreviation Rating Description
Stock Ratings
SO Sector Outperformer Stock is expected to outperform the sector during the next 12-18 months.
SP Sector Performer Stock is expected to perform in line with the sector during the next 12-18 months.
SU Sector Underperformer Stock is expected to underperform the sector during the next 12-18 months.
NR Not Rated CIBC World Markets does not maintain an investment recommendation on the stock.
R Restricted CIBC World Markets is restricted*** from rating the stock.
Sector Weightings**
O Overweight Sector is expected to outperform the broader market averages.
M Market Weight Sector is expected to equal the performance of the broader market averages.
U Underweight Sector is expected to underperform the broader market averages.
NA None Sector rating is not applicable.
**Broader market averages refer to the S&P 500 in the U.S. and the S&P/TSX Composite in Canada.
"Speculative" indicates that an investment in this security involves a high amount of risk due to volatility and/or liquidity issues.
***Restricted due to a potential conflict of interest.

Ratings Distribution*: CIBC World Markets Inc. Coverage Universe
(as of 06 Jun 2013) Count Percent Inv. Banking Relationships Count Percent
Sector Outperformer (Buy) 157 41.0% Sector Outperformer (Buy) 152 96.8%
Sector Performer (Hold/Neutral) 189 49.3% Sector Performer (Hold/Neutral) 183 96.8%
Sector Underperformer (Sell) 29 7.6% Sector Underperformer (Sell) 26 89.7%
Restricted 7 1.8% Restricted 7 100.0%
Ratings Distribution: Technology Hardware Coverage Universe
(as of 06 Jun 2013) Count Percent Inv. Banking Relationships Count Percent
Sector Outperformer (Buy) 6 60.0% Sector Outperformer (Buy) 6 100.0%
Sector Performer (Hold/Neutral) 2 20.0% Sector Performer (Hold/Neutral) 2 100.0%
Sector Underperformer (Sell) 2 20.0% Sector Underperformer (Sell) 2 100.0%
Restricted 0 0.0% Restricted 0 0.0%
Technology Hardware Sector includes the following tickers: BBRY, DWI, EXFO, MITL, RDL, SMT, SVC, SWIR, VCM, WIN.

*Although the investment recommendations within the three-tiered, relative stock rating system utilized by CIBC World Markets Inc.
do not correlate to buy, hold and sell recommendations, for the purposes of complying with NYSE and NASD rules, CIBC World
Markets Inc. has assigned buy ratings to securities rated Sector Outperformer, hold ratings to securities rated Sector Performer, and
sell ratings to securities rated Sector Underperformer without taking into consideration the analyst's sector weighting.

Important disclosures required by IIROC Rule 3400, including potential conflicts of interest information, our system for
rating investment opportunities and our dissemination policy can be obtained by visiting CIBC World Markets on the web
at http://researchcentral.cibcwm.com under 'Quick Links' or by writing to CIBC World Markets Inc., Brookfield Place, 161
Bay Street, 4th Floor, Toronto, Ontario M5J 2S8, Attention: Research Disclosures Request.
57
Legal Disclaimer
This report is issued and approved for distribution by (a) in Canada, CIBC World Markets Inc., a member of the
Investment Industry Regulatory Organization of Canada (IIROC), the Toronto Stock Exchange, the TSX Venture
Exchange and a Member of the Canadian Investor Protection Fund, (b) in the United Kingdom, CIBC World Markets plc,
which is regulated by the Financial Services Authority (FSA), (c) in Australia to wholesale clients only, CIBC Australia
Ltd, a company regulated by the ASIC with AFSL license number 240603 and ACN 000 067 256, and (d) in Japan, CIBC
World Markets (Japan) Inc., a registered Type 1 Financial product provider with the registration number Director General
of Kanto Finance Bureau #218 (collectively, CIBC World Markets) and (e) in the United States either by (i) CIBC World
Markets Inc. for distribution only to U.S. Major Institutional Investors (MII) (as such term is defined in SEC Rule 15a -6)
or (ii) CIBC World Markets Corp., a member of the Financial Industry Regulatory Authority (FINRA). U.S. MIIs receiving
this report from CIBC World Markets Inc. (the Canadian broker-dealer) are required to effect transactions (other than
negotiating their terms) in securities discussed in the report through CIBC World Markets Corp. (the U.S. broker-dealer).
This report is provided, for informational purposes only, to institutional investor and retail clients of CIBC World
Markets in Canada, and does not constitute an offer or solicitation to buy or sell any securities discussed here in in any
jurisdiction where such offer or solicitation would be prohibited. This document and any of the products and information
contained herein are not intended for the use of private investors in the United Kingdom. Such investors will not be able
to enter into agreements or purchase products mentioned herein from CIBC World Markets plc. The comments and views
expressed in this document are meant for the general interests of wholesale clients of CIBC Australia Ltd.
This report has been prepared by the CIBC group and is issued in Hong Kong by Canadian Imperial Bank of
Commerce, Hong Kong Branch, a registered institution under the Securities and Futures Ordinance, Cap 571 (the SFO).
This report is intended for professional investors only (within the meaning of the SFO) and has been prepared for
general circulation and does not take into account the objectives, financial situation or needs of any recipient. Any
recipient in Hong Kong who has any questions or requires further information on any matter arising from or relating to
this report should contact Canadian Imperial Bank of Commerce, Hong Kong Branch at Suite 3602, Cheung Kong Centre,
2 Queens Road Central, Hong Kong (telephone number: +852 2841 6111). Orders for Hong Kong listed securities will be
executed by Canadian Imperial Bank of Commerce, Hong Kong Branch. Canadian Imperial Bank of Commerce, Hong
Kong Branch has entered into an arrangement with its broker-dealer affiliates worldwide to execute orders for securities
listed outside of Hong Kong for Hong Kong clients.
This report is intended for distribution in Singapore solely to accredited investors, expert investors and institutional
investors (each, eligible recipients). Eligible recipients should contact Danny Tan at Canadian Imperial Bank of
Commerce, Singapore Branch at 16 Collyer Quay #04-02 Singapore 049318 (telephone number + 65-6423 3806) in
respect of any matter arising from or in connection with this report.
The securities mentioned in this report may not be suitable for all types of investors. This report does not take into
account the investment objectives, financial situation or specific needs of any particular client of CIBC World Markets.
Recipients should consider this report as only a single factor in making an investment decision and should not rely solely
on investment recommendations contained herein, if any, as a substitution for the exercise of independent judgment of
the merits and risks of investments. The analyst writing the report is not a person or company with actual, implied or
apparent authority to act on behalf of any issuer mentioned in the report. Before making an investment decision with
respect to any security recommended in this report, the recipient should consider whether such recommendation is
appropriate given the recipient's particular investment needs, objectives and financial circumstances. CIBC World
Markets suggests that, prior to acting on any of the recommendations herein, Canadian retail clients of CIBC World
Markets contact one of our client advisers in your jurisdiction to discuss your particular circumstances. Non-client
recipients of this report who are not institutional investor clients of CIBC World Markets should consult with an
independent financial advisor prior to making any investment decision based on this report or for any necessary
explanation of its contents. CIBC World Markets will not treat non-client recipients as its clients solely by virtue of their
receiving this report.
Past performance is not a guarantee of future results, and no representation or warranty, express or implied, is
made regarding future performance of any security mentioned in this report. The price of the securities mentioned in this
report and the income they produce may fluctuate and/or be adversely affected by exchange rates, and investors may
realize losses on investments in such securities, including the loss of investment principal. CIBC World Markets accepts
no liability for any loss arising from the use of information contained in this report, except to the extent that liability may
arise under specific statutes or regulations applicable to CIBC World Markets.
Information, opinions and statistical data contained in this report were obtained or derived from sources believed to
be reliable, but CIBC World Markets does not represent that any such information, opinion or statistical data is accurate
or complete (with the exception of information contained in the Important Disclosures section of this report provided by
CIBC World Markets or individual research analysts), and they should not be relied upon as such. All estimates, opinions
and recommendations expressed herein constitute judgments as of the date of this report and are
58
Legal Disclaimer (Continued)
subject to change without notice.
Nothing in this report constitutes legal, accounting or tax advice. Since the levels and bases of taxation can change,
any reference in this report to the impact of taxation should not be construed as offering tax advice on the tax
consequences of investments. As with any investment having potential tax implications, clients should consult with their
own independent tax adviser.
This report may provide addresses of, or contain hyperlinks to, Internet web sites. CIBC World Markets has not
reviewed the linked Internet web site of any third party and takes no responsibility for the contents thereof. Each such
address or hyperlink is provided solely for the recipient's convenience and information, and the content of linked third
party web sites is not in any way incorporated into this document. Recipients who choose to access such third-party web
sites or follow such hyperlinks do so at their own risk.
Although each company issuing this report is a wholly owned subsidiary of Canadian Imperial Bank of Commerce
(CIBC), each is solely responsible for its contractual obligations and commitments, and any securities products offered
or recommended to or purchased or sold in any client accounts (i) will not be insured by the Federal Deposit Insurance
Corporation (FDIC), the Canada Deposit Insurance Corporation or other similar deposit insurance, (ii) will not be
deposits or other obligations of CIBC, (iii) will not be endorsed or guaranteed by CIBC, and (iv) will be s ubject to
investment risks, including possible loss of the principal invested. The CIBC trademark is used under license.
2013 CIBC World Markets Inc. All rights reserved. Unauthorized use, distribution, duplication or disclosure
without the prior written permission of CIBC World Markets is prohibited by law and may result in prosecution.

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